The Reserve Bank of India (RBI) is reviewing its scheme of penalising banks for non-replenishment of ATMs after getting suggestions from lenders, its Deputy Governor T Rabi Sankar mentioned on Friday.
In August this yr, RBI had introduced that it’s going to penalise banks for failure to well timed replenish foreign money notes in ATMs. The scheme, which is aimed toward guaranteeing the supply of enough money for the general public by way of ATMs, has come into impact from October 1, 2021.
“We have received various feedback– some positive and some raising concerns. There are issues specific to locations. We are trying to take all the feedback and have a review and see how best it can be implemented,” Sankar advised reporters in a post-policy name with reporters on Friday.
He mentioned the concept behind the penalty on outages in ATMs is to make sure that money is offered in all ATMs, particularly in rural and semi-urban areas, on a regular basis.
As per the scheme, cash-out of greater than ten hours at any ATM in a month will entice a flat penalty of Rs 10,000 per ATM.
In the case of White Label ATMs (WLAs), the penalty can be charged to the financial institution which is assembly the money requirement of that exact WLA.
Replying to a question on decrease rates of interest affecting senior residents as a consequence of fall in fastened deposit charges amid increased inflation, RBI Governor Shaktikanta Das mentioned the reduce in repo charge was thought-about completely crucial throughout the pandemic to help the economic system. “If you are not able to support the overall economy which is collapsing or is moving into a contraction zone, then there would be other major issues for all, including for senior citizens,” he advised reporters.
He, nevertheless, mentioned one ought to spend money on small financial savings schemes which might be at the moment providing a lot increased charges than their precise formula-based charges.
Citing an instance, he mentioned the one-year time period deposit charge in small financial savings schemes is at the least 170-180 foundation factors increased than the precise charge which is arrived at by the rules.
“In this crisis situation, we should see this (small savings scheme rates) as a fiscal support to senior citizens and middle class and small savers,” Das mentioned.
