How a cash recycler machine differs from an automated teller machine2 min read . Updated: 09 Nov 2017, 01:31 AM IST
Unlike an ATMfrom which you can only withdraw cashcash recyclers allow you to deposit cash as well
In the last 1 year, many banks including the new-age payments banks and small finance banks, have been considering whether they should start using cash recyclers instead of ATMs. In the last couple of months some public sector banks have also floated tenders to procure and install cash recyclers. Here is a look at how cash recyclers work.
On the outside, it looks like any other ATM. However, unlike an ATM—from which you can only withdraw cash—cash recyclers allow you to deposit cash as well. Just as cash withdrawal at an ATM reflects in your account balance immediately, the cash deposit also takes place in real time and the transaction reflects in your bank account at once. When you deposit cash, a cash recycler counts the currency notes and displays the amount denomination wise and the total amount inserted in machine for deposit. Once it displays the amount, you have to confirm if the amount is correct, and the transaction will then be complete.
To use the recycler for cash withdrawal, you can use an ATM or debit card like you do for any ATM transaction. However, in case you want to deposit money through a cash recycler, you have to be a customer of the specific bank that runs the cash recycler. For instance, if you are a Bank of Baroda customer, you can deposit your cash only at a Bank of Baroda cash recycler and not in any other bank’s recycler. You can also deposit the money in a beneficiary’s bank recycler (say Bank of Baroda) if she has an account with the same bank (Bank of Baroda). When you go to deposit cash, remember that the machine will not accept torn, taped or mutilated notes. Usually the machines accept Rs100, Rs500 and Rs2000 denomination notes.
There are two ways to deposit money through a cash recycler—by inserting your ATM or debit card and by entering your account number. If you are depositing money by inserting your debit card then you can deposit up to Rs2 lakh per day. You can’t deposit above Rs50,000 if your Permanent Account Number (PAN) is not registered with your bank. In case you are just typing your account number without giving your debit card details to the cash recycler machine, you can deposit only up to Rs20,000 per day. The transaction amount varies from bank to bank. If you exceed the limit, the cash recycler will reject the transaction. If you have an inactive bank account, you cannot deposit money in it through a cash recycler.
Besides deposits and withdrawals, the machine allows you to change personal identification number (PIN) and also check the balance in your savings account. Cash recycler also provides you with mini statement that have details of your last 10 transactions from your bank account.