ATM body protests RBI's penalty rule if found with no cash, seeks review

MHA norms restrict cash movement in rural, semi-urban areas, which will hinder cash distribution, says an official of the Confederation of ATM Industry

Shocked by the latest decision of Reserve Bank of India (RBI) to impose penalty on banks if an automated teller machine (ATM) runs out of cash for more than ten hours in a month, the Confederation of ATM Industry (CATMi) has protested the decision and sought a review of the rule.

In a direction issued to banks on Tuesday, the banking regulator said from October 1, banks will face a penalty of Rs 10,000 per ATM if found without cash for more than ten hours in a month. CATMi has now sent a communication to the banking regulator protesting the move