If you have found an ATM without cash nearby then don't worry, RBI has come out with a new rule. Those who withdraw money regularly from ATMs, face this issue at least once in a month — when ATM runs out of cash and you have to find another way to take money out of the bank. But beginning from October, the lender will pay a fine if the ATM fails to replenish money when you need it.
Reserve Bank of India has recently introduced a scheme to impose penalty on banks if ATMs remain out-of-cash. The inconvenience caused to the public due to the non-availability of cash in ATMs led the central bank to take this decision. “The ‘Scheme of Penalty for Non-replenishment of ATMs’ has been formulated to ensure that sufficient cash is available to the public through ATMs,’ the RBI said in a circular.
The central bank of India has a mandate issue banknotes and the banks are fulfilling this mandate by dispensing banknotes to the public through their wide network of branches and ATMs. RBI has recently reviewed the downtime of ATMs due to cash-outs. “ATM operations affected by cash-outs lead to non-availability of cash and cause avoidable inconvenience to the members of the public," the banking regulator observed.
So, RBI has asked the banks or White Label ATM Operators (WLAOs) to strengthen their systems. The banks must monitor the availability of cash in ATMs and ensure timely replenishment to avoid cash-outs.