RBI directive on reconciliation of transactions in the Cash Management Industry

          Reserve Bank of India vide Circular no RBI/2018-19/183 DCM (Plg) No.2746/10.25.07/2018-19 dt.May 14, 2019 addressed to The Chairman / Managing Director / Chief Executive Officer of all Banks has indicated the procedure to be followed for reconciliation of transactions in the ATM Cash replenishment cycle.

          This is as per para 15 of the monetary policy statement dated October 04, 2016, the Bank had constituted a Committee on Currency Movement [Chair: Shri D.K. Mohanty, Executive Director, Reserve Bank of India] to review the entire gamut of security of the treasure in transit.

The recommendations of the Committee relating to timely reconciliation of transactions (i.e. ATM cash replenishment) between the bank, the service provider and its sub-contractor have been examined.

Accordingly, Reserve Bank of India  has been decided that the bank shall follow the procedure as under:

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.

Multiple points of cash withdrawal may be avoided and shall be restricted to one in each centre. However, metropolitan centres may have two points of cash withdrawal.

Reconciliation of transactions shall be done between the bank, the service provider and its sub-contractors at least on a T+3 basis.

In the event of a 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 to the service provider and its sub-contractors on request.

 Further, as a part of 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.
• ·       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.

CATMi is the unified voice of the ATM industry

The Confederation of ATM industry (CATMi) is a registered non-profit trade association representing ATM Manufacturing & Outsourcing Companies, White Label ATM Operators, Payment Services Companies, Cash Replenishment & Cash in Transit Agencies, ATM Security Services & Solutions Companies etc. in India.

Headquartered in the financial capital city of Mumbai, CATMi was incorporated with a vision to create an environment conducive to the sustainable growth & development of the modern ATM industry in India.

This circular should reduce the instances of fraud in the ATM cash replenishment process and also assist insurance companies in taking decisions in case of fraud claims from the ATM industry.