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The banks have done away with the cash retraction system in ATMs. The system,which enabled the machine to take back currency if it was not removed within a certain time,was withdrawn last week after the Reserve Bank of India (RBI) agreed to National Payments Corporation of Indias proposal for removing the feature from all ATMs to deal with increasing number of fraudulent claims about non-receipt of cash.

Banks have posted messages on their websites that the system has been disabled.The step has been taken to prevent the misuse of the system as RBI has received complaints about people trying to defraud banks by holding on to some withdrawn currency notes in ATMs and then claiming non-receipt of cash after the machine takes back the rest.

The central bank also conducted a pilot project.Karur Vysya Bank managing director and chief executive K Venkataraman said the move was a positive one and in the interest of customers.T M Bhasin,chairman and managing director of Indian Bank,said,It is a welcome move as it would help customers.

Some customers said the move was both good and bad. Earlier,the customer was assured that the amount would be recredited to his account if there was a delay in taking it out.Now,he has to be extra cautious as the next person entering the booth could take it away, said Stephen Isaac,a customer.Security guards posted at ATM booths have been a worried lot ever since the plan was implemented.

V Senthilnathan,a guard at a Chetpet ATM,said it is the responsibility of customers to be alert and take the cash from the machine within the stipulated time.In the past,we had to remind people to ensure they collected their belongings. Now,we have to remind them about the cash too.

Source: TOI