Several Founders, Co-Founders, CXO Bankers, CXO Fintech professionals & people who participated in the ePanel discussions:

  • Mr. Vinod Shah, CIO/GM(IT), Scheduled Apex Bank
  • Mr. Rohit Kilam, CTO, CMS Info Systems
  • Mr. Amit Sukhija, Senior VP, AU Small Finance Bank
  • Mr. Sharad Goklani, President and CTO at AU Small Finance Bank
  • Mr. Hitesh Thakkar, Fintech Consultant, Self-Service Automation
  • Mr. Shreejith Menon, Senior Director, IDFC FIRST Bank
  • Mr. Vikas R Panditrao, Co-Founder, Forum of Industry and Academic Knowledge Sharing (FIAKS)
  • Many other CEO/CXO Bankers & Fintech professionals on FIAKS Forum requested to remain anonymous

RBI will levy monetary charges on ATMs that run out of cash, starting 1 October 2021. Under the ‘Scheme of penalty for non-replenishment of ATMs’, a penalty of ₹10,000 per ATM will be levied in the event of a cash-out situation for more than 10 hours in a month.[1]

This does make a point;

  • Well, the circular mentions a penalty to the bank when ATM runs out of cash. However many locations where cash demand is high, banks put two or even more than two ATMs at the same location to ensure customers get cash from another ATM. Why such banks will be penalized if one ATM is out of cash but a second or third ATM in the same location has cash available. Seems banks who have done this will be penalized more due to this and they will tend to keep a single ATM at one location.

Seems this is not applicable to cooperative banks:

  • A community member says, “we have clearly written to RBI saying that we replenish cash from our branches only as we have all ATMs at branch locations only. Hence not applicable to us. They have since then not replied or reverted back. Banks may like to do that where applicable.”

Have you heard about MSPs? Let’s hear out their views;

  • MSPs or Managed Service Providers are known as ATM operators in the industry. These MSPs state that these regulations do recognize the role of cash in the economy and thus banks need to ensure cash availability. Most likely looks like this penalty will become a pass-through from banks to MSPs and from MSPs to cash logistics agencies.
  • As of Sept 2020, there are 234,244 in the country, and most of them are managed by MSPs. MSPs appoint cash-in-transit companies to replenish the currency notes in the machines.

Now let’s see what the members have got to say;

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