RBI extends timelines for banks to use lockable cassettes in ATMs by March 2023.
What is the news :
- The Reserve Bank of India has extended the timeline for banks using lockable cassettes in their ATMs which could be swapped at the time of cash replenishment by a year to March 31, 2023.
- RBI in a notification said the decision has been taken after it received representations from various banks and Indian Banks’ Association expressing difficulties in meeting the timeline.
What is the directions :
- It has directed the Banks to set a Board approved internal timeline to adhere to the extended deadline and submit quarterly status report and has asked the Boards of the banks to monitor the progress to ensure compliance.
- Currently, most of the ATMs are replenished by way of open cash top-up or by loading cash in the machines on the spot. RBI had asked to replace this system by ensuring that lockable cassettes are swapped at the time of cash replenishment in the ATMs.
- Earlier, the banks were supposed to start using lockable cassettes in a phased manner such that it covers atleast one-third of the ATMs covered by the banks by March 31, 2021. Later, the timeline was extended to March 31, 2022
What is ATM cassette?
- The currency notes inside the ATM are stacked in boxes called ‘cassettes’. Each cassette is loaded with one denomination. Most of the ATMs in the country have four such cassettes, while some of the older ATMs may have two cassettes.
- The cassettes are equipped with on-board smart chips, which store and carry a variety of information, such as how many notes are contained in the cassette, note currency or denomination and access history and error codes.
- The platform includes a cassette exchanger, which enables the cassette handler to transfer funds from one cassette to another without opening the cassette or touching the cash inside, GRG Banking officials say. The exchanger can monitor cash movement between the cassettes.
- For example, the cash taken from a retail store can be transferred directly to a nearby ATM, eliminating the need for taking cassettes to a CIT operator’s cash center and counting the cash there.
About RBI:
- The Reserve Bank of India(RBI) is India’s central bank and regulatory body and is responsible for the issue and supply of the Indian rupee and the regulation of the Indian banking system.
- It also manages the country’s main payment systems and works to promote its economic development.
- Established : 1 April 1935
- Governor: Shaktikanta Das
- Deputy governors (4): Rabi Sankar, M. Rajeshwar Rao, Dr. M. D. Patra, M. K. Jain
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