Penalty of Rs. 10,000 on ATM Soon for Non-Replenishment with Cash

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TaxBlock | Oct 5, 2021 | Views 670440

Penalty of Rs. 10,000 on ATM Soon for Non-Replenishment with Cash

Penalty of Rs. 10,000 on ATM Soon for Non-Replenishment with Cash

The RBI has concerned as the most of the ATM does not have sufficient funds and it creates nuisance for people. So the RBI has finalised that if any ATM goes out of cash for more than 10 hours in a single month with effect from 1 October, 2021, they will be liable of a fine of Rs. 10000. The scheme has been decided by RBI so that the bank regulates the sufficient amount of cash in ATM.

WHAT IS THE KEY HIGHLIGHTS OF THE SCHEME?

1. RBI will impose penalty if any ATM of bank remains out of cash or keeps insufficient cash for a hard and fast season of 10 hours in a month from October 1, 2021, onwards

2. Bank will have to submit the statement of downtime i.e. time during which the ATM was out of cash.

Reserve Bank of India (RBI) vide notification no. RBI/2021-22/84 DCM (RMMT) No.S153/11.01.01/2021-22 dated 10th day of August 2021, gave warning in regards to keeping a track of availability of cash in ATM. In case of WLA which means White Label ATMs, which has been set up by NBFC, the penalty will be charged to the bank as per requirement of the cash availability.

SCHEME OF PENALTY FOR NON-REPLENISHMENT OF ATMS

1. Effective Date

The scheme will be applicable from October 1, 2021. So, the bank has to keep track of availability of cash in ATM, and ensure that the ATM doesn’t go out of cash.

2. Condition for including events of cash outs in an ATM

The condition is that the customer is not able to withdraw the cash out of ATM because of non-availability of cash.

3. Procedure

Bank shall have to submit a statement of downtime which means they have to keep a record of machine if it goes out of cash. The statement shall be submitted to the Issue Department of RBI under whose jurisdiction these ATMs are located. The statement shall be submitted every month to the Issue Department within 5 days of the following month, so basically first statement of the October month will be submitted on or before 5 November, 2021.

4. Quantum of Penalty

The penalty under this scheme will attract a penalty of 10,000 rupees per ATM. The Scheme of Penalty for Non-replenishment of ATMs, has been passed for customers and to ensure that the customer doesn’t suffer.

Author- Adv.Shivam Kumar

Legal and content Executive, Taxblock India Pvt. Ltd

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