RBI Extends Deadline for Implementing ATM Cassette Swap Mechanism until March 2025.

Banking & Finance

The Reserve Bank of India (RBI) has granted an extension to banks and Automated Teller Machine (ATM) operators for implementing the cassette swap mechanism for money replenishment in ATMs until March 31, 2025.


      - The banking regulator has exempted Cash Recycler Machines (CRMs) from the cassette swap requirement for money replenishment.

      - This exemption also applies to banks that do not use third-party agencies for cash replenishment in ATMs.

      - In 2018, the Reserve Bank of India (RBI) directed banks to adopt the cassette swap mechanism in ATMs, aiming for phased implementation by covering at least one-third of ATMs annually, but due to slow progress, the deadline has been extended to March 31, 2025, following recommendations from the Committee on Currency Movement.

Main Points:-   (i) The cassette swap mechanism involves swapping lockable cassettes pre-filled with currency notes during ATM cash replenishment. Each ATM needs three sets of five cassettes, costing Rs. 15,000 to Rs. 20,000 each.

      (ii) The world's first ATM was introduced by Barclays Bank in 1967, while in India, HSBC Bank launched the first ATM in 1987. ICICI Bank became the first to introduce mobile ATMs in India. Additionally, ATMs in India are controlled by the National Payments Corporation of India (NPCI).

(iii) As of August 2024, there were 2.55 lakh ATMs in India. Of these, 2.20 lakh were bank-owned ATMs, and 35,000 were owned by White Label ATM Operators.

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