RBI Guidelines on Failed Transactions and Cash Retractions: Key Compliances
In today’s digital age, ATMs have become an integral part of our financial lives. They offer convenience and accessibility for various banking transactions. However, situations may arise where customers need to retract cash from the ATM. This blog post delves into the guidelines issued by The Reserve Bank of India (RBI) to ensure smooth and efficient cash retraction processes at ATMs.
The following table outlines the key compliances created under Payment and Settlement Act,2007 and Reg. 2008, RBI Issuance and Operation of Prepaid Payment Instruments Directions,2017 surrounding cash retraction at ATMs.
|
Compliance Description |
Compliance Type |
| The Framework of Turn Around Time (TAT) for failed transactions issued by RBI shall apply to incidents of cash retractions. | On Going |
| Banks shall be required to ensure adequate customer awareness regarding enablement of cash retraction at ATMs/ Cash recyclers. | On Going |
| Banks / White label ATM operators (WLAOs) are required to implement suitable cash retraction at ATMs/ Cash recyclers, as per their risk management processes (for period as required) and Banks are advised to ensure adequate customer awareness regarding enablement of cash retraction.
The framework of Turn Around Time (TAT) for failed transactions issued by RBI shall apply to incidents of cash retraction. |
On Going |
Conclusion
The RBI’s guidelines on cash retraction at ATMs aim to provide a seamless experience for customers and ensure compliance with regulatory requirements. By implementing the TAT framework for failed transactions, ensuring customer awareness regarding cash retraction, and implementing suitable cash retraction mechanisms, banks and WLAOs can enhance customer experience, reduce the risk of failed transactions, and maintain the integrity of payment systems.
Disclaimer: This is an effort by Lexcomply.com, to contribute towards improving compliance management regime. User is advised not to construe this service as legal opinion and is advisable to take a view of subject experts.
