Executive Summary:
The Reserve Bank of India (RBI) is implementing a scheme to monitor and penalize banks and White Label ATM Operators (WLAOs) for ATM downtime due to cashouts, to ensure sufficient cash availability to the public. Effective from October 1, 2021, the scheme imposes monetary penalties for non-replenishment of ATMs. Banks and WLAOs must strengthen their systems for monitoring cash availability and timely replenishment, with monthly downtime reports due to the RBI.
Key Points / Main Content:
* **Objective:** Ensure sufficient cash availability to the public through ATMs.
* **Effective Date:** October 1, 2021.
* **Monitoring and Replenishment:**
* Banks and WLAOs must strengthen systems to monitor cash availability in ATMs.
* Timely replenishment is required to avoid cashouts.
* **Cashout Condition:**
* Penalty applies when customers cannot withdraw cash due to non-availability of cash in an ATM.
* **Reporting Procedure:**
* Banks submit system-generated statements on ATM downtime due to non-replenishment to the RBI Issue Department.
* For WLAOs, the sponsoring bank submits a separate statement on their behalf.
* Statements are due within five days of the following month (e.g., October 2021 statement due by November 5, 2021).
* **Penalty Quantum:**
* Cashout exceeding ten hours in a month attracts a flat penalty of ₹10,000 per ATM.
* For WLAs, the penalty is charged to the bank meeting their cash requirement.
* Banks may recover the penalty from the WLA operator at their discretion.
* **Administration and Appeals:**
* The Scheme is administered by Issue Departments of the RBI Regional Offices.
* The Officer-in-Charge of the Issue Department imposes penalties.
* Appeals can be made to the Regional Director/Officer-in-Charge within one month of the penalty date.
* Appeals considered only for reasons beyond the bank/WLAO's control (e.g., lockdown, strike).
Impact Analysis:
* Banks:
* Impact: Banks are responsible for monitoring and replenishing their own ATMs and ensuring WLAOs they sponsor do the same. They face monetary penalties for non-compliance.
* Action Required: Strengthen monitoring systems, ensure timely ATM replenishment, submit monthly downtime reports, and potentially manage penalty recovery from WLAOs.
* White Label ATM Operators (WLAOs):
* Impact: WLAOs are indirectly impacted as penalties for their ATMs' cashouts will be levied on the banks that supply them with cash.
* Action Required: WLAOs need to coordinate with their sponsoring banks to ensure timely cash replenishment and avoid cashouts, potentially facing penalties levied by the banks.
* Reserve Bank of India (RBI):
* Impact: RBI is responsible for administering the scheme and ensuring its effectiveness in maintaining cash availability in ATMs.
* Action Required: Administer the scheme, monitor bank compliance, collect and process downtime reports, impose penalties, and handle appeals.
* General Public:
* Impact: The public benefits from improved ATM cash availability and reduced inconvenience due to cashouts.
* Action Required: None.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for issuing banknotes and regulating the banking system.
ATMs: Automated Teller Machines, which dispense banknotes to the public.
White Label ATM Operators (WLAOs): Independent ATM operators who do not have their own banking license.
Scheme of Penalty for non-replenishment of ATMs: A scheme introduced by the Reserve Bank of India to ensure sufficient cash is available in ATMs and to penalize banks and WLAOs for cashouts.
October 01, 2021: The effective date of the Scheme of Penalty for non-replenishment of ATMs.
Issue Department of RBI: The department within the Reserve Bank of India responsible for managing currency issuance and related activities.
Mumbai, Maharashtra: City in India where the Department of Currency Management, Central Office is located.
Subrata Das: Chief General Manager-in-Charge at Reserve Bank of India
भारतीय �रजवर् बक�
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2021-22/84
DCM (RMMT) No.S153/11.01.01/2021-22 August 10, 2021
The Chairman /
Managing Director & CEO
All Banks
Dear Sir / Madam,
Monitoring of Availability of Cash in ATMs
As you are aware, the Reserve Bank of India has a mandate to issue banknotes and
the banks are fulfilling this mandate by dispensing banknotes to the public through
their wide network of branches and ATMs. In this connection, a review of downtime
of ATMs due to cash-outs was undertaken and it was observed that ATM operations
affected by cash-outs lead to non-availability of cash and cause avoidable
inconvenience to the members of the public.
2. It has, therefore, been decided that the banks/ White Label ATM Operators
(WLAOs) shall strengthen their systems/ mechanisms to monitor availability of cash
in ATMs and ensure timely replenishment to avoid cash-outs. Any non-compliance in
this regard shall be viewed seriously and shall attract monetary penalty as stipulated
in the “Scheme of Penalty for non-replenishment of ATMs” in the Annex. The
Scheme shall be effective from October 01, 2021.
Yours faithfully,
(Subrata Das)
Chief General Manager-in-Charge
Encl: As above
म�ु ा �बधं िवभाग क��ीय कायालर् य अमर भवन चौथी मिंजल सर पी एम रोड मबुं ई
, , , , . . , - 400 001
दरू भाष फैक्स ईमले आईडी
:91-22-2260 3000/4000 :91-22-2267 0570 :cgmincdcm@rbi.org.in
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Department of Currency Management, Central Office, Amar Building, 4th Floor, Sir P.M.Road, Mumbai 400
001
Tel No: 91-22-2260 3000/4000 Fax No: 91-22-2267 0570 Email ID:
cgmincdcm@rbi.org.inAnnex
Scheme of Penalty for non-replenishment of ATMs
Objective of the Scheme
The Scheme of Penalty for non-replenishment of ATMs has been formulated to
ensure that sufficient cash is available to public through ATMs.
Effective Date
The Scheme shall be effective from October 01, 2021. Therefore, banks/ WLAOs
should put in place a robust system for monitoring the availability of cash in ATMs
and ensure timely replenishment to avoid cash-outs.
Condition for counting instances of cash-outs in an ATM
When the customer is not able to withdraw cash due to non-availability of cash in a
particular ATM.
Procedure
Banks shall submit system generated statement on downtime of ATMs due to non-
replenishment of cash to the Issue Department of RBI under whose jurisdiction these
ATMs are located. In case of WLAOs, the banks which are meeting their cash
requirement shall furnish a separate statement on behalf of WLAOs on cash-out of
such ATMs due to non-replenishment of cash. Such statements shall be submitted
for every month within five days of the following month i.e., first such statement for
the month of October 2021 shall be submitted on or before November 05, 2021 to
the Issue Department concerned.
Quantum of Penalty
Cash-out at any ATM of more than ten hours in a month will attract a flat penalty of
₹ 10,000/- per ATM. In case of White Label ATMs (WLAs), the penalty would be
charged to the bank which is meeting the cash requirement of that particular WLA.
The bank, may, at its discretion, recover the penalty from the WLA operator.Administration of the Scheme
The Scheme of Penalty will be administered by Issue Departments of the Regional
Offices of the Bank. The Competent Authority to impose penalty will be the Officer-
in-Charge of the Issue Department of the Regional Office under whose jurisdiction
the ATMs are located. Appeal against the decision of the Competent Authority, if
required, may be made by the banks/ WLAOs to the Regional Director/Officer-in-
Charge of the Regional Office concerned, within one month from the date of
imposition of penalty. As the intention of the Scheme is to ensure replenishment of
ATMs in time, appeals would be considered only in cases of genuine reasons
beyond the control of bank/ WLAOs such as, imposition of lockdown by the State/
Administrative authorities, strike, etc.
***