Cash Retraction
Srinagar – Acting promptly on the bank reports on several instances of frauds pertaining to mis-use of cash retraction facility at the ATMs, the guildelines issued by the Reserve Bank of India to immobilize the cash retraction facility at ATMs have gone to deaf ears in the states leading, Jammu and Kashmir Bank- leaving the officials red-faced.
The Bank has so far failed to comply with the guidelines issued by the Reserve Bank of India to immobilize the cash retraction facility at its Automated Teller Machines.
When asked, whether the guidelines of RBI have been implemented, head, Corporate Communications, J&K Bank Limited, Sajjad Bazaz told Kashmir Observer. I dont have information regarding this thing, and if any guidelines have been issued they will be implemented automatically.
According to the RBI directions, the banks need to inform their customers about the withdrawal of this facility. But since senior official is not aware of the immobilization the cash retraction facility, customers will hardly have information regarding the new guidelines.
The cash retraction facility was provided by the banks under which the cash used to go back into the ATM machine if not collected within a stipulated time, which used to be 10-15 seconds, but varies from one bank to another.
According to the RBI directions, the banks are communicating to their customers about the withdrawal of this facility, under which the cash goes back into the ATM machine if not collected within a stipulated time, which is generally 10-15 seconds, but varies from one bank to another.
The facility was initially implemented to avoid the cases of someone else getting the money, if the actual cardholder forgets to collect the withdrawn cash before leaving the ATM.
Banks need to aware customers to collect the entire cash withdrawn through the ATM before leaving the ATM and the bank would not be liable for any financial loss on account of failure to collect the cash from the ATM dispenser tray.
The Reserve Bank also asked the banks to educate the customer on the consequences of cash retraction and the reasons for disabling this facility, display information regarding disabling cash transaction at each and every ATM location and ensure wide propagation.
The central bank also sought flashing of the message on the ATM machine before the transaction and has asked the banks to ensure that new ATMs being installed do not provide cash retraction features.
Most of the banks, including HDFC Bank, Axis Bank and Canara Bank, have already removed the cash retraction facility from all their ATMs, while the withdrawal process for this facility is under way for the few remaining ATMs.
It may be recalled, the facility was initially implemented to avoid the cases of someone else getting the money, if the actual cardholder forgets to collect the withdrawn cash before leaving the ATM.
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