Section 23 of the Banking Regulation Act, 1949 Installation of off-site Cash Deposit Machines (CDMs) / Bunch Note Acceptor Machines (BNAMs)

February 2, 2015

All Scheduled Commercial Banks (including RRBs)

Dear Sir/Madam,

Section 23 of the Banking Regulation Act, 1949 Installation of off-site Cash Deposit Machines (CDMs) / Bunch Note Acceptor Machines (BNAMs)

Please refer to circular DBOD.No.BL.BC.137/22.01.001/2008-09 dated June 12, 2009 wherein all SCBs have been permitted to install off-site ATMs at centers / places identified by them without having the need to take permission from the Reserve Bank in each case. RRBs were also advised vide paragraph 7.2 of Master Circular RPCD.CO.RRB.No.BL.BC.4/03.05.90/2014-15 dated July 1, 2014 on Branch Licensing that they need not obtain prior permission of RBI for setting up off-site ATMs.

2. We have been receiving references from banks seeking permission for installation of Cash Deposit Machines/ Bunch Note Acceptor Machines. The issue has been examined and it is advised that Scheduled Commercial Banks (including RRBs) are permitted to install Cash Deposit Machines / Bunch Note Acceptor Machines at centres / places identified by them without having the need to take permission from Reserve Bank in each case, subject to following conditions:

1. CDMs/BNAMs may be installed at any place identified by banks with adequate security arrangements.
2. CDMs/BNAMs should not return any note which is suspect / counterfeit to the customer.
3. An audit trail of transactions should be available to enable reporting detection of counterfeit notes.

3. The banks (including RRBs) should report full details of opening such off-site CDMs / BNAMs (that are not installed in existing branch premises / ATM rooms) to the Regional Office of concerned DBS or DBR, CO (in respect of CDMs / BNAMs installed in Maharashtra and Goa) immediately after installation, and in any case not later than two weeks after making the machines active / live.

Yours faithfully,

(Lily Vadera)
Chief General Manager