RBI permission no longer required by banks to open off-site ATMs

In terms of the extant guidelines banks are required to obtain the prior approval of Reserve Bank of India before opening a new branch/office, including an Off-site ATM. Further, banks are required to include all such proposals for opening new branches/Off-site ATMs in their Annual Branch Expansion Plans.

Reserve Bank of India has now permitted Scheduled Commercial Banks to install Off-site ATMs at centres/places identified by them, without having the need to take permission from the Reserve Bank in each case. 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.

The banks will however need to report full details of the Off-site ATMs installed by them in to RBI, immediately after operationalisation and in any case not later than two week.

Banks which have been providing the facility of cash deposit to the customers at their ATMs, will need to 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.

However, the details of shifting/closure etc., of Off-site ATMs will continue to be reported to RBI.

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