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Cassette - Swaps in ATMs- RBI Notification.

Courtesy/By: Deepshikha Thakur | 2021-07-20 16:55     Views : 49

Reserve Bank of India issued a notification to all the Chairman, managing director, and chief executive officers of all Scheduled commercial banks in RRBs urban cooperative banks, state cooperative former district central cooperative bank Regarding cassette slabs in ATM on 12/07/2021[1].

Reserve Bank of India in one of its press releases about the statement on the development and regulatory policy on 04/10/2016[2] Stated in paragraph 15 about currency management. It states about the review of security of treasures in transit. It was stated that a high-level interagency committee is to be set up to strengthen the security of remittance of security notes or coins, by the end of October 2016 to review the entire gamut of security of treasures in transit. 

The bank constituted a committee on currency movements which was shared by the executive director Shri DK Mohanty. The committee made some recommendations and it was examined and it was advised that the bank must consider using local cassettes in their ATMs which shall be swapped at the time of cash replenishment to mitigate the risks involved in top-up or open cash replenishment. This advice was to be implemented in a phased manner that would cover at least 1/3 automatic teller machines operated by the banks per year and all the machines must achieve the cassette swap by 31/03/2021 as stated in the notification dated 12/04/2018[3].  It was stated in the notification that Within 15 days of the close of every quarter commencing 30th June 2018 the banks are required to furnish a quarterly report in an enclosed format to the issue department of the regional office under the jurisdiction of their head office via emails.

The notification issued on July 12th, 2021 stated that the advice that was to be implemented in paste manner covering at least 1/3 ATMs operated by the banks every year and covering all the ATMs achieving cassette swap by 31/03/2021 has not been met and Reserve Bank of India has received representation from Indian banks association on behalf of various banks that have expressed difficulties in meeting the timeline. After consideration RBI has decided to extend the timeline for implementation of cassette swap by a year, that is till 31st March 2022.  It states that the banks' will monitor the progress and make the corrections or any required course of action at the end of every quarter starting from the quarter ended September 2021 within seven days of the end of the quarter banks need to report the status at the level of the board, ACB. The banks need to send the report via email and no hard copy is required to the chief manager in charge, department of currency management, Reserve Bank of India comment central office, building, 4th floor, Sir pm road, Fort, Mumbai 400001.

 

[1] RBI/2021-22/71, DCM (Plg.) No.S39/10.25.007/2021-22

[2] RBI, Statement on Developmental and Regulatory Policies Reserve Bank of India, https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=38225

[3] RBI/2017-18/162, DCM (Plg.) No. 3641/10.25.007/2017-18

 

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Courtesy/By: Deepshikha Thakur | 2021-07-20 16:55

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