RBI Asks Banks to Disable Cash Retraction Facility at ATMs

The Reserve Bank of India (RBI) asked banks to remove ‘cash retraction facility’, as bank notes getting sucked back by the machine if not collected immediately.

Earlier, when you use your ATM card to withdraw cash, you get a few seconds (10-15 seconds) to collect notes. This time is been varying from bank to bank. For some reason, if you are unable to collect money within that time duration, ATM swallows your money and keeps it in a separate tray in its machine. And later, amount is re-credited to your account.

Now, you need not worry to collect cash, as ATM will not eat it up. Instead money will remain at the mouth of the ATM machine, till you collect it. This is one of the good thing from RBI’s directive. But, henceforth you must be extra careful in collecting the cash dispensed by the ATM, as you cannot later claim the money from the bank.

Most banks including HDFC, Axis and Canara bank have already removed cash retraction facility from their ATMs, while a few remaining banks are undergoing the same withdrawal process.

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