Banks get time till March 2022 to implement lockable cassettes swap system for ATMs, BFSI News, ET BFSI



MUMBAI: The Reserve Bank has extended the deadline till March 2022 for banks to use only lockable cassettes for replenishing cash in 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.

Following representations received from banks citing difficulties in moving towards the lockable cassettes system, RBI has decided to extend the deadline for its implementation till March next year, according to a notification issued on Wednesday.

In April 2018, the apex bank 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, such that all ATMs achieve cassette swap by March 31, 2021.

“In this regard, representations have been received from Indian Banks’ Association on behalf of various banks expressing difficulties in meeting this timeline. Accordingly, it has been decided to extend the timeline for implementation of cassette swap in all ATMs till March 31, 2022,” RBI said.

Banks have also been asked to monitor progress and make the required course correction at the end of every quarter and report status to the RBI.

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

At the end of May, there were 1,10,623 ATMs on site of banks and 1,04,031 of site-ATMs in the country.