Last week, the Reserve Bank of India (RBI) held a stock-taking meeting with the Cash Logistics Association (CLA). A key issue that figured in the discussions was ATM cassette-swaps lockable trays for cash replenishment, as opposed to loose loading. Introduced on April 18, 2018, they were to be added, the RBI had made clear, in a phased manner to cover "at least one-third of ATMs" every year. The process was to be completed by FY21.
Two extensions (the latest will lapse by the end of FY23), and four years after the first diktat, it appears the deadline may again be missed. And the RBI, Business Standard has learnt, would have preferred a better ground report. The CLA has submitted a "confidential update" to the banking regulator, which has also set up an internal committee to monitor developments.
The larger context in which the meeting between the RBI and CLA took place is the doubling of cash in circulation (CIC) to more than ₹31 trillion in FY22, or 13.13 per cent of GDP (and projected at ₹33 trillion for FY23, or 13.04 per cent of GDP), from ₹16 trillion and 11.6 per cent of GDP at the time of demonetisation. Ideally, a much higher CIC should have been a bonanza for cash-in-transit firms, ATM deployers, and cashout enablers at points of sale (micro ATMs).
These inter-linked businesses are, however, pulling in different directions.
This story is from the December 05, 2022 edition of Business Standard.
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This story is from the December 05, 2022 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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