ATM operators seek RBI to review penalty scheme for dry ATMs

Banks and ATM operators are hoping that RBI will soon review the penalty on ATMs that are out of cash but many are on a wait and watch mode on the expansion of their ATM networks.

Senior Bank Executive noted, “With the penalty in place, it makes more sense to have ATMs on-site along with bank branches that to keep them off-sites. This would ensure that the ATMs can be services easily and frequently”.

“We are positive that there will be some relief. Otherwise, the penalty could also affect expansion into semi-urban and rural regions as there are often logistical problems in loading money”.

The RBI had in August this year announced the scheme of penalty for dry ATMs under which ATMs that are out of cash for more than ten hours in a month will attract a penalty of ₹10,000 each. The scheme came into effect on Oct 1, 2021.

Radha Roma Dorai, Secretary, Confederation of ATM Industry said, “The penalty may affect the launch of ATMs in rural regions. Withdrawals would become difficult in such a scenario, especially when there is a focus on financial involvement”.