The Confederation of ATM Industry (CATMi) in its recent announcement want that they would shut down 2.98 lakh ATM machines in the country by March 2019. It says that the new rules issued by the Centre and bank regulator the Reserve Bank of India (RBI) would inflate the cost of running an ATM in the country, making it an unviable business.
As per the new RBI guidelines, ATMs will be refilled by swapping the cassettes and not replenishing the existing ones with fresh cash.
These rules were introduced by the RBI in April 2018 and the regulator had allowed the industry to take time till April 2021 to transition to these rules in phases. The RBI directs that now all cash vans have to be accompanied by armoured guards.
It wants stronger cybersecurity mechanisms at ATMs. It wants the operators and banks to implement the new guidelines by March 2019. Neither the ATM industry nor the banks want to bear these costs.