Due to the rising of frauds in India
on the cash retraction facility in India, the Indian regulators were looking at
various alternatives to minimize such instances.
A detailed discussion took place in
the NFS steering committee meeting held on 07/04/2011. One of the suggestions received
was to disable the ATM retraction facility. As this was a new step, a pilot run
was conducted on selected ATM’s.
As
expected, not a single complaint on cash retraction was received by member
banks. On the basis of the pilot run feedback, NPCI sought RBI’s approval to
adopt the disabling of ATM retraction facility across Pan-India ATM’s.
RBI agreed to the NPCI’s proposal and communicated
their acceptance vide Lr.No.DPSS.CO.PD NO1230/02.07.2011/2011-12 dt.09/01/2012.
The initial deadline for the member
banks to disable the cash retraction in their respective ATM’s was 31/03/2012.
Subsequently, it was extended to August 31st, 2012.
With the August31st, 2012 deadline
too over, all Banks in India, have disabled the cash retraction facility in
their ATM’s.
This step was disseminated to the
bank customers vide SMS’s, Notice Board messages, messages in Statement of
Accounts.
The press
too widely reported this new service. Majority of the banks have also
highlighted this on their websites eg:- Axis
Bank, HDFC Bank,
SVC Bank,
Indian Overseas Bank.
Plus, by the word-of-mouth publicity, the message would have spread across the
banking customers.
The cash disbursement at the ATM’s
depends on the model of the particular ATM. In some ATMs, there is a Cash
dispenser, wherein the cash falls into the dispenser. In some ATM’s, the money
remains at the mouth of the ATM, which the customer has to take it.
Ideally, the cash in all ATMs’ should have
a cash dispenser, wherein the cash falls into it and the customer collects it
from there.
What is Cash
Retraction?
