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Banks get time till March 2023 to implement new system to replenish cash in ATMs

RBI in its circular said Banks must set a Board approved internal timeline to adhere to the extended deadline and submit quarterly status reports. Boards of the banks shall monitor the progress to ensure compliance. (Photo: Reuters)Premium
RBI in its circular said Banks must set a Board approved internal timeline to adhere to the extended deadline and submit quarterly status reports. Boards of the banks shall monitor the progress to ensure compliance. (Photo: Reuters)

  • In April 2018, the RBI had asked banks to consider using lockable cassettes in their ATMs, which shall be swapped at the time of cash replenishment

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The Reserve Bank of India on Thursday gave another extension till March 2023 to banks to implement its direction on use of only lockable cassettes for replenishing cash in their ATMs.

Currently, most of the ATMs (Automated Teller Machines) are replenished by way of open cash top-up or by loading cash in the machines on the spot.

To do away with the current system, the Reserve Bank of India (RBI) had asked banks to ensure that lockable cassettes are swapped at the time of cash replenishment in the ATMs.

In April 2018, the regulator had asked banks to consider using lockable cassettes in their ATMs, which shall be swapped at the time of cash replenishment. It was to be implemented in a phased manner, covering at least one-third ATMs operated by the banks every year, so that all ATMs achieve cassette swap by March 31, 2021.

However, in July last year, RBI had extended the deadline till March 31, 2022.

Representations have been received from various banks and Indian Banks’ Association expressing difficulties in meeting the timeline. Accordingly, the RBI has been decided to extend the timeline for implementation of cassette swap in all ATMs till March 31, 2023.

RBI in its circular said Banks must set a Board approved internal timeline to adhere to the extended deadline and submit quarterly status reports. Boards of the banks shall monitor the progress to ensure compliance.

The recommendation to switch to lockable cassettes in ATMs was based on a report of the Committee on Currency Movement set up by the central bank.

At the end of February, 2022, there were 1,20,597 ATMs on the site of banks and 1,00,909 off-site ATMs in the country.

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