Banks to be penalized if ATMs run out of cash

• On Tuesday, the Reserve Bank of India announced that they have decided to penalize the banks if their ATMs run out of cash.

• This rule will come into effect from October 1.

• As per the decision, the banks will be penalized if the ATM remains out of cash for more than 10 hours.

• The central bank will fine ₹10,000 per ATM in the case of failure to timely replenish currency notes in ATMs.

• "In this connection, a review of downtime of ATMs due to cash-outs was undertaken and it was observed that ATM operations, affected by cash-outs, lead to non-availability of cash and cause avoidable inconvenience to the members of the public," the RBI said.

• "The Scheme of Penalty for non-replenishment of ATMs has been formulated to ensure that sufficient cash is available to the public through ATMs," it also said.