Most of the ATMs in India currently are replenished manually via open cash top-ups or by placing cash into the machines on the spot. There is very little to no transparency in this process, which is also subject to risk and mishap. To change this manual process, the Reserve Bank of India (RBI), in 2021, advised and issued guidelines to banks to use the lockable cassette swap method for ATM cash replenishment.
What is RBI’s cassette swap method?
A cassette is loaded with currency notes of only one denomination. For example, one cassette can have currency notes of only Rs. 2,000, while the ATM will need a different cassette to load notes for, say, Rs. 500. These cassettes are loaded and swapped at the ATM by the appointed custodian. During the cash replenishment process, custodians need to swap the older cassettes, regardless of the balance and eliminate the process of cash top-up loading.
This method adds an extra layer of security and helps curb the possibility of tampering during the ATM cash replenishment process. It also helps reduce the risk of fake currency during cash loading.
RBI extension for the guideline
The regulator has extended the timeline for the implementation of cassette swaps in all ATMs by banks by one year till March 31, 2023. This is the second timeline the central bank has given to banks.
How Dista helps track and streamline cassette management
By leveraging an AI-enabled location intelligence platform like Dista, cash logistics companies can streamline and improve security around the cassette management process. Let’s learn how Dista, our AI-enabled location intelligence web-scale platform helps track and trace cassettes.
Our system adds QR codes to cassettes before placing them in the secure bank vault. We onboard custodians to the Dista system, following which they scan the cassettes and put them in the armored van. The intelligent system maps the scanned cassettes to custodians, post which they are carried to the ATM.
Managers can access the real-time status of the mapped cassettes via a web dashboard. Custodian takes out old cassettes from the ATM and scans them with the Dista app, which maps them again to the respective custodian.
Finally, the custodian scans the cassettes and returns them to the vault. The Dista system provides a roster of cassettes based on daily compliances. It also generates daily reports of cassettes in transit or unaccounted for.
Benefits of leveraging Dista for cassette swap
- The system tracks custodians and, thereby, cassettes that are mapped to them. This offers real-time visibility to managers and helps them monitor the movement of cassettes.
- Accurate mapping of the cassettes to the custodians helps increase security and reduces the risk of mishaps.
- The Dista system helps organizations follow strict adherence to RBI guidelines.
- It offers multiple reports and detailed cassette transaction analytics, including the flagging of incidents. The system is also equipped to provide a transit report if we receive the information on the currency notes inside all cassettes.
If you are a cash logistics firm dealing in ATM cash replenishment, get in touch with us, and we can help you streamline the process.