Bank ATMs: Outsourcing of Cash Management and Reconciliation of Transactions

As per committee on currency Chest (Chaired :Shri.D.K.Mohanty) recommendation, RBI advised the banks that they shall follow the below procedure.

1. Cash indents by the Service Provider shall be made at least a day in advance (T-1 where T is the day of cash loading), in consultation with the chest / nodal branch.
2. Cash withdrawal points shall be restricted to one in each centre. However, metropolitan centres may have two points of cash withdrawal.
3. Reconciliation of transactions shall be done between the bank, the service provider and its sub-contractors at least on a T+3 basis.
4. In the cases of dispute or the reporting of alleged / attempted breach of security / laid down procedures, access to video footage of the ATM may be provided by the bank on the request of the service provider and its sub-contractors.
5. It was advised by the Banking Regulator that the outsourcing arrangements for cash management, the bank shall encourage their service provider and its sub-contractors to put in place an efficient digital records management system for data retrieval and reconciliation.
6. Bank shall also encourage service provider and its sub-contractors to create and maintain a data base of employees at industry level through any unique mode / code of identification by the Self-Regulatory Organisation to ensure that they possess unblemished records.

Source: RBI circular RBI/2018-19/183,DCM (Plg) No.2746/10.25.07/2018-19 dated May 14, 2019