RBI to penalize banks if ATM run out of cash.
A big relief to consumers in need of cash from ATMs. The Reserve Bank of India (RBI) decided to Impose penalty of 10,000 per ATM if it runs out of cash. RBI decided to impose this rule on banks from 1st October 2021.
Basically RBI said to every bank is to establish a system to analyze the available amount of cash in ATM, so that when the cash is not available at ATMs bank can refill it as soon as possible.
Reserve Bank of India has conducted a survey in which they observed that banks are not providing service on time, and because of that most of the people are suffering. RBI said that Banks are deducting the amount when customer are using other banks ATMs but not refilling its own ATMs for more than 1 or two days. people face such problems during the weekends most of the time.
RBI will monitor the system generated statements on the downtime of ATMs, each ATMs are generating the statement for availability of cash and informing the bank in the period of time. Each Banks have to submit its system generated statement in every period of time.
According to new rule, the penalty of Rs.10,000 per ATM will be charged if bank is running out of cash for more than 10 hours. In one month if the banks ATMs are running out of cash for more than 10 hour penalty is going to be charged. In the case of white label ATMs the penalty would be charged to the bank which is maintaining the requirement of that particular white label ATMs.
If bank have another problem or issue, bank can appeal against the decision of the competent authority if required. the appeal made by bank can be submitted to Regional Director or officer-in-charge of the regional office concerned within one months from the date of imposition of penalty.