According to the RBI circular, it will impose a penalty on the banks concerned if there is no cash in the ATM for more than 10 hours in any one month. The new rule will come into effect from October 1, 2021.
The Reserve Bank of India (RBI) has said that it will impose a fine of Rs 10,000 on the concerned bank who does not put money in the ATM on time. RBI’s move to impose penalty on banks has received mixed reactions. ATM companies have shunned the rule of having cash in RBI’s ATM. ATM operators and cash in transit companies are raising their hands saying that they will not pay the fine. Also Read: Special FD Scheme: SBI, ICICI, Bank Of Baroda and HDFC Bank Special FD Scheme for senior citizens, check latest fd rates
Penalty for not having cash in ATM for more than 10 hours
According to the circular of RBI, if there is no cash in the ATM for more than 10 hours in any one month, this penalty will be imposed on the banks concerned. The new rule will come into effect from October 1, 2021. The central bank said, the purpose of levying penalty for not putting cash in ATMs is to ensure that sufficient funds are available in these machines for the convenience of the people. Also Read: LIC’s special policy Bima Jyoti: Deposit Rs 737 per month and get 2 lakh after maturity
The Reserve Bank has got the responsibility of issuing notes. At the same time, banks bear the responsibility of providing money to the public through their wide network of branches and ATMs. Also read: Gold Price Today: Gold and silver prices fall today, gold is getting Rs 10,000 cheaper than the record level
2,13,766 ATMs across the country
In 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 can collect the penalty amount from the White Label ATM operator. Various banks across the country had 2,13,766 ATMs as of the end of June 2021. Also read: Bank Holidays: Banks to remain closed for 4 days in coming week, check full list here, settle your work today
In a TOI report, a senior executive of an MSP firm said that there are some places where ATMs run out of cash within a few hours of loading. It is not possible to operate these machines if the fine is imposed every month. Also Read: PM Modi will give Rs 1625 crore to 4 lakh people of the country today, know who will get the benefit?
According to the RBI report, the country’s largest state-run State Bank of India (SBI) has the highest number of ATMs across the country. There are 63900 SBI ATMs across the country. At the same time, there are 16800 ATMs of ICICI Bank, 16800 of Axis Bank, 15000 of HDFC Bank, 13700 of PNB, 13100 of Canara Bank, 11800 of Union Bank, 11600 of Bank of Baroda, 5400 of Bank of India and 5200 of Indian Bank.
According to the MSP, the rules are well thought out as they recognize the role of cash in the economy and it is the responsibility of the banks to ensure the availability of cash. However, he says the penalty has not been thought of as banks outsource most of the work.
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