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.
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