RBI will penalize banks if ATMs are without cash

Customers will no longer have to face a shortage of money at ATMs

MUMBAI: All banks and white label automated teller machine (ATM) operators have been instructed by the Reserve Bank to keep money in ATMs. If there is no money in an ATM for more than ten hours in a month, the Reserve Bank will impose a fine.

Under the new norm, which will come into effect from October 1, a penalty of Rs 10,000 per ATM will be imposed. Banks that fail to ensure that there is cash in ATMs will have to pay a penalty to the Reserve Bank, according to a notification issued by the Reserve Bank.

A review of how long ATMs have been empty without cash was conducted and it was noticed that customers were facing inconvenience due to lack of money in ATMs.

In view of this fact, the new standard is being implemented, the RBI said. The new standard will ensure that banks and white-label ATM operators retain cash in ATMs, the RBI said, adding that non-compliance with the standard would be taken seriously.