“As per RBI mandate we have disabled our Cash Retraction facility, please don’t forget to collect your cash before you leave the ATM counter”. This alert you must have seen in most of the ATMs notice board or at the screen of ATM machine just before you pull your cash out from the teller.
If you don’t know what Cash Retraction is, I will tell you what it is? Cash retraction is just a facility given by bank in its ATMs. If you withdraw cash from ATM and forget to collect the same then the cash is taken back by the ATM and same is credited back to your account. This actually reduces the chance of fraud or losing money. But sorry to say, now this facility has been withdrawn by all the banks.
RBI directed all banks to withdraw Cash Retraction facility and now it’s the responsibility of the customer to manage his/her cash. If the person is failed or forget to collect cash, then the same cash will be available to the next person coming to withdraw money. RBI clearly stated that, it is a sole responsibility of customer in case of fraud or money loss.
In short, now you have to be extra careful in collecting the cash dispensed by the ATM, as you cannot later claim the money from the bank, which was the case when this ‘Cash Retraction Facility’ was in place at the ATMs.
Why Cash Retraction has been disabled by RBI?
During the past years, banks had reported several instances of fraud pertaining to cash retraction to RBI about people trying to defraud banks by holding on to some withdrawn currency notes in ATMs and then claiming non-receipt of cash after the machine takes back the rest. E.g. you go to ATM and withdraw Rs. 10,000. If ATM dispenses 10 notes of Rs. 1,000 each and you just hold 5 notes of Rs. 1,000, after few seconds 5 notes get retracted by ATM. Now you go to the bank branch and claim for non-receipt of the entire Rs. 10,000. Since ATM does not have the capability of counting the pieces of retracted notes, it only reports the retraction to bank. Finally bank has to bear such losses and credit the full amount in your account.
Basically the disabling the cash retraction facility has been taken to prevent the misuse. So, next time when you are at the ATM, be careful and don’t hurry else the person standing behind you in the queue might not required to insert his Debit Card into the ATM as the cash has already been dispensed for him. 🙂