According to the circular of RBI, this penalty will be imposed 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.
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.
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.
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.