What changed
RBI introduced a formal penalty scheme for ATM cash-outs effective October 1, 2021. Banks and WLAOs must now submit monthly system-generated statements on ATM downtime due to cash-outs to the respective RBI Issue Department. Non-compliance will attract a flat penalty of ₹10,000 per ATM if cash-out exceeds 10 hours in a month.
What it means for you
Banks and WLAOs must strengthen cash monitoring and replenishment systems to avoid penalties. The penalty is charged to the bank meeting cash requirements for WLAs, though banks can recover it from WLA operators. Appeals are allowed only for genuine reasons beyond control, like lockdowns or strikes.
What you must do
- Implement robust systems to monitor ATM cash levels and ensure timely replenishment to avoid cash-outs exceeding 10 hours per month.
- Submit monthly system-generated statements on ATM downtime due to cash-outs to the relevant RBI Issue Department within five days of the following month.
- For WLAs, ensure the bank meeting cash requirements submits separate statements on behalf of WLAOs.
- Prepare for potential penalties of ₹10,000 per ATM for cash-outs over 10 hours in a month, effective from October 1, 2021.
Who it affects
All banks with ATM networks, White Label ATM Operators (WLAOs), Banks meeting cash requirements for WLAs, RBI Issue Departments
What is the penalty for an ATM with cash-out exceeding 10 hours in a month?
A flat penalty of ₹10,000 per ATM will be imposed for any cash-out exceeding 10 hours in a month, effective from October 1, 2021.
Who is responsible for submitting statements on ATM cash-outs for White Label ATMs?
The bank that meets the cash requirement for the White Label ATM must submit a separate statement on behalf of the WLAO to the RBI Issue Department.
Can banks appeal against the penalty imposed?
Yes, appeals can be made to the Regional Director or Officer-in-Charge of the Regional Office within one month, but only for genuine reasons beyond control such as lockdowns or strikes.