Starting October 1, RBI to levy penalty on ATMs that run out of cash

Penalty of Rs 10,000 per ATM will be levied in the event of a cash-out situation for more than 10 hours in a month

The Reserve Bank of India (RBI) has asked banks and white label automated teller machine (ATM) operators to put in place a robust system that will allow them to monitor the availability of cash in ATMs and ensure timely replenishment to avoid cash-out situations.

The central bank has introduced a 'scheme of penalty for non-replenishment of ATMs', effective October 1, 2021, wherein banks and white label ATM operators will be penalised, in the event of cash-outs beyond the permissible time limit.

According to the scheme, a penalty of Rs 10,000 per ATM will be levied in the event of a