RBI should lay down criteria for cos handling ATM cash: IBA
In order to streamline the cash management system, Indian Banks’ Association (IBA) has suggested the Reserve Bank to lay down minimum networth criteria for companies engaged in replenishing cash at ATM machines.
Banks must enforce minimum eligibility standards as part of their Request for Proposal (RFP) process, IBA said in a report submitted to Reserve Bank of India (RBI).
‘Only Cash Replenishment Agencies (CRAs) compliant with minimum eligibility standards should be considered fit for outsourcing of services by banks either directly or through MSPs (Managed Service Providers of ATMs),’ it said. A minimum financial networth of Rs 5 crore is fixed for any organisation inclined to undertake cash management services outsourcing work on behalf of the banks, it said.