Container Technology connected with ATMs is well known to people. Here, exchange of empty Cassettes for full is possible which an appreciable feature of ATMs is. It is true that these cassettes can easily be accessed by anyone in the cash handling circle. This is ofcourse an inherent risk.
In order to avoid the risks involved in open cash replenishment, RBI had advised Banks to use lockable cassettes in their ATMs, which will be swapped later during cash replenishment. This was advised to be done by banks in a phased manner, say at one third of ATMs done for each year. This swapping process would obviously cost the banks’ exchequer a huge expenditure of Rs. 3,200 to Rs. 4,800 crore.
Processes involved in an ATM Swap:
- Every ATM will have four extra cassettes.
- These cash will be in the vault of Cash logistics Agencies
- When Banks give the cash, it will be loaded in the Cassettes under the surveillance of Cameras.
- The cassettes are sealed with a number to avoid tampering.
- These cassettes will then be carried to the ATMs and loaded in place of older sealed cassettes (which are in the ATM and brought back to the vault)
- Since it involves swapping of cassettes, it is faster.
- Also, this prevents pilferage and reconciliation issues.
Now, that the bankers feel that this swapping process would involve more cost, which they cannot afford to at this juncture when the banks are already suffering with Bad Loans and NPAs. As of end of May 2018, the country had 2,25,608. Even if 2 lakh ATMs are required to maintain the Cassette swap facility, the cost of procuring two to three sets of four cassettes each at the rate of Rs. 20,000 per cassette would amount to Rs. 3200 to Rs. 4800 crores.