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The Monetary charges on ATM.
The Non-availability of cash in ATMs penalizes banks from October 1, 2021, as per RBI’s latest announcement. A penalty of Rs 10,000 is charged per ATM if the cash-out situation is more than 10 hours in a month. The Monetary charges on ATM cashout are a measure to reduce the inconvenience caused to the public.
Also Read: ATM withdrawal charges increased!. Know the revised charges.
Non-availability of cash in ATMs.
Not only banks but also the White label ATMs assure the timely refilling of cash to avoid penalty. ATMs are owned and operated by non-bank entities are known as White label ATMs. So, the banks/ White label ATM operators shall improve the procedure to monitor the availability of cash. Suppose, ATM operation affects more than 10 hours in a month, then a penalty of Rs 10,000 is levied. This system will come into effect from October 1, 2021.
In White label ATM, the non-availability of cash penalty will levy on banks providing the cash. The objective is to provide sufficient cash available to the public through ATMs. The Penalties are only the cashouts due to the non-availability of cash.
Scheme of Penalty for non-replenishment of cash.
Banks will submit the system-generated ATM downtime statement due to the non-availability of cash to the RBI. In White label ATM operators, banks that are meeting the cash requirements will provide statement separately. Every month statements are to be submitted before five days of the following month. For example, October month statements must submit within November 5, 2021, to the RBI.
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Administration of the scheme.
The Issue Departments of the Reginal offices of the banks will administer the scheme of penalty. Any Appeal against the penalty shall be made by banks/WLAOs within one month from the date of imposition of penalty. Since the intention is to assure the availability of cash, appeals will consider genuine reasons like lockdown, strike ,etc.
