The Reserve Bank of India is reviewing its plan to penalize banks for not depositing notes in ATMs on time. This step is being taken after the feedback received from the banks. This information has been given by T Rabi Shankar, Deputy Governor of Reserve Bank of India.
What’s the matter: In fact, in August this year, the RBI had said that it would penalize banks for failing to deposit notes in ATMs on time. The scheme was implemented with effect from October 1, 2021 to ensure availability of sufficient cash to the public through ATMs. According to this scheme, a fine of Rs 10,000 per ATM will be levied for not having cash in any ATM for more than ten hours in a month.
According to T Rabi Shankar, we have received various responses – some are positive and some have expressed concern. There are some issues regarding location specific. We are taking and reviewing all the feedback and see how it can be best implemented..
He said that the idea behind imposing the penalty for empty ATMs is to ensure that all ATMs have cash available at all times, especially in rural and small towns.
Petition for Insolvency Action: Meanwhile, the Reserve Bank has filed petitions before the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against two Srei Group companies. The Reserve Bank filed two separate petitions in the Kolkata bench of NCLT against two non-banking financial companies (NBFCs)- Srei Infrastructure Finance and Srei Equipment Finance. Both the companies owe over Rs 30,000 crore to banks and financial institutions.
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