Banks need not seek permission for off-site ATMs: RBI
12 Jun 2009
The Reserve Bank of India has permitted scheduled commercial banks to install off-site ATMs at centres/places identified by them, without taking permission from it in each case.
Permission of the Reserve Bank of India is not required for installation of on-site ATMs (ATMs which are located at the branches and extension counters) for which banks hold authorisations issued by the RBI under Section 23 of the Banking Regulation Act, 1949.
''This would, however, be subject to any direction which the Reserve Bank may issue, including for closure/shifting of any such off-site ATMs, wherever so considered necessary by the Reserve Bank,'' RBI said in a release.
The banks should, however, report full details of the off-site ATMs installed by them in terms of the above general permission to the regional office concerned of the department of banking supervision/DBOD, CO (in respect of off-site ATMs in Maharashtra and Goa) immediately after operationalisation and in any case not later than two weeks, as per the prescribed format, RBI said.
RBI said banks should put in place adequate safeguards / procedures (like access through PIN / password etc), so as to ensure identification of depositor in case notes deposited are found to be forged / defective.
The details of shifting/closure etc of off-site ATMs should also be reported to the concerned regional office of the department of banking supervision/ DBOD, CO (in respect of off -site ATMs in Maharashtra & Goa) immediately after such shifting/closure and in any case not later than two weeks, RBI said.
In terms of the earlier RBI guidelines, banks were required to obtain prior approval of the central bank before opening a new branch/office, including an off-site ATM. Further, banks were required to include all such proposals for opening new branches/off-site ATMs in their annual branch expansion plans.
