Banks To Now Be Held Accountable For Cash Shortage In ATMs; RBI Issues Circular Warning Of PenaltiesCustomers line up next to an ATM in Siliguri: Photo credit: DIPTENDU DUTTA/AFP/GettyImages

Banks across the nation may end up paying penalties should their ATMs run dry, thus failing to dispense cash for more than three hours and creating inconvenience for the customers, reports DNA.

The Reserve Bank of India (RBI) has already issued a circular to all the banks to this tune, claimed the report.

Despite remonetisation by the government, ATMs across several small cities and rural areas are said to have been running out of cash for several hours., thus resulting in big queues.

“The sensors installed in the ATMs alert the banks about the depletion of cash. But sometimes due to the lackadaisical attitude of the staff, cash re-filling is not done immediately. In rural areas, people are forced to go to banking correspondents in such a situation, and they end up paying higher charges for each transaction," said the source.

The RBI had set up a committee headed by Indian Banks' Association (IBA) chief executive officer V G Kannan to look into the matter.

The central bank, in 2018, found the cash withdrawal rate to be much higher than deposits in many states, leading to a severe cash crunch. This was more prevalent in states like Bihar, Telangana, Andhra, MP, UP, Rajasthan, Karnataka and Maharashtra.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement