What changed
Previously, banks needed RBI approval for each off-site ATM and had to include such proposals in their annual branch expansion plans. Now, banks can set up off-site ATMs at any centre of their choice without prior permission, but must report full details to the Regional Office concerned of Department of Banking Supervision/ DBOD, CO (in respect of Off-Site ATMs in Maharashtra and Goa) immediately after operationalisation and in any case not later than two weeks.
What it means for you
This relaxation gives banks greater operational flexibility to expand their ATM networks quickly in response to customer demand. Banks can now deploy off-site ATMs strategically without waiting for RBI approvals, but must ensure robust safeguards for cash deposit facilities and comply with any future RBI directions on closure or shifting.
What you must do
- Report full details of each new off-site ATM to the Regional Office concerned of Department of Banking Supervision/ DBOD, CO (in respect of Off-Site ATMs in Maharashtra and Goa) immediately after operationalisation and in any case not later than two weeks using the prescribed format.
- Implement adequate safeguards for cash deposit ATMs, such as PIN/password access, to identify depositors in case of forged or defective notes.
- Continue to report any shifting or closure of off-site ATMs to the Regional Office concerned of Department of Banking Supervision/ DBOD, CO (in respect of Off-Site ATMs in Maharashtra and Goa) immediately after such shifting/closure and in any case not later than two weeks.
- Ensure compliance with conditions listed in Annex III of the circular and note the permitted facilities in Annex IV.
Who it affects
All scheduled commercial banks (excluding RRBs), Banks planning to expand ATM networks, Regional Offices of Department of Banking Supervision
Do we still need RBI approval for on-site ATMs?
No, on-site ATMs located at branches or extension counters already do not require RBI permission. This circular only relaxes rules for off-site ATMs.
What is the reporting timeline for new off-site ATMs?
Banks must report full details to the Regional Office concerned of Department of Banking Supervision/ DBOD, CO (in respect of Off-Site ATMs in Maharashtra and Goa) immediately after operationalisation, and in any case not later than two weeks.
Can RBI later order closure or shifting of an off-site ATM installed under this general permission?
Yes, the general permission is subject to any direction RBI may issue, including for closure or shifting of such ATMs.