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.



Comments

Post a Comment

Popular posts from this blog

CERTIFICATE EXAMINATION IN INTERNATIONAL TRADE FINANCE

-
Image
          This certification is essential for all members of a Bank Trade Finance Department.   The syllabus covers key aspects required by team members to effectively discharge their duties. Trade Finance is one of the traditional forms of bank finance in India. In view of reforms and liberalisation, this has gained a new significance.   Many of the practices in trade finance have evolved over a period of time and some are guided by Ministry of Commerce and Reserve Bank of India, besides WTO and International Chamber of Commerce through UCPDC 600. With the increase in the volume of trade both domestically and internationally, there is a need for trade finance professionals from banks as well as corporates. The Objectives of this IIBF Examination is as under:   (i) To provide candidates with competencies required to function as trade finance practitioners. (ii) To enable candidates to possess the ...
Read more

IIBF-Certificate Examination in Foreign Exchange Facilities for Individuals

-
          The primary objective this IIBF course is to make the branch officials familiar with the FEMA provisions that impact their day to day functioning at the branch level.     This exam is being introduced pursuant to the recommendation of a committee of RBI.           Normally foreign exchange transactions pertaining to individuals are handled at branches only and are not referred to specialised forex cells.           The course covers ‘Foreign Exchange Facilities for individuals under FEMA1999’ RBIs FAQs’ on Forex Facilities for Residents (Individuals) (updated up to November 21, 2014) For full details refer to Reserve Bank of India website: Introduction : The legal framework for administration of foreign exchange transactions in India is provided by the Foreign Exchange Management Act, 1999. Un...
Read more

IIBF introduces Self-Paced E-learning courses (SPeL) for its two certificates

-
Image
          Indian Institute of Banking Finance (IIBF) has taken a quantum leap in disseminating knowledge to its members and non-members.           IIBF in April 2019, introduced the Self-Paced E-learning courses (SPeL) concept for banking enthusiasts to be familiar with banking concepts.           In the first stage, IIBF has launched   two certificate courses i.e 1. Digital Banking and 2. Ethics in Banking.           The objective of this self-paced e-learning mode are as follows: • Participants can make the best use of his or her time, in order to meet his or her learning objectives. • Participants can access the course   anywhere/anytime with an internet connection. • Participants need not travel to give their examinations. It saves time and money of the participants. ...
Read more