Mumbai: The Reserve Bank of India (RBI) has taken steps to address the inconveniences faced by people due to the non-availability of cash in ATMs. It has decided that it will impose a fine of Rs 10,000 on the concerned bank for not depositing the money in the ATM on time.
RBI will impose this penalty on the banks concerned if the cash is not kept in the ATM (Automated Teller Machine) for more than 10 hours in any one month. This arrangement will come into effect from October 1, 2021. “The purpose of levying penalty for non-dispensing of cash in ATMs is to ensure that sufficient funds are available in these machines for the convenience of the people,” the central bank said in a circular.
The Reserve Bank has been given the responsibility of issuing notes. At the same time, banks bear the responsibility of making money available to the public through their wide network of branches and ATMs. “Therefore, it has been decided that banks/white-label ATM operators shall strengthen their system regarding availability of cash at ATMs and ensure that cash is deposited in the machine on time so that people do not face any inconvenience,” the central bank said.
RBI said, “Non-compliance of the rule in this regard will be viewed seriously and monetary penalty will be imposed.” This provision has been made in the scheme of penalty for non-dispensing of cash in ATMs. The scheme will come into effect from October 1, 2021.
Regarding the quantum of the penalty, the central bank said a fine of Rs 10,000 per ATM will be levied if cash is not kept in any ATM for more than 10 hours in a month. In the case of White Label ATMs, the penalty will be levied on the bank that dispenses the cash at the concerned ATM. White Label ATMs are operated by non-bank entities. The bank may collect the penalty amount from the White Label ATM operator.