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 into 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 should 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 the Indian Banks’ Association, expressing difficulties in meeting the timeline. Accordingly, it has been decided to extend the timeline for implementation of cassette swap in all ATMs till March 31, 2023, ”the RBI said in a circular.
The RBI has also asked banks to 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 circular said.
The recommendation to switch to lockable cassettes in ATMs was based on a report by 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.