RBI modifies 2022 circular on ATM cassette swaps, allowing banks to delegate monitoring to Board-appointed committees. The change offers operational flexibility while retaining accountability.
RBI Allows Delegation of ATM Cassette Swap Monitoring
In a partial modification of its March 31, 2022 circular (RBI/2021-22/190), the RBI has allowed banks to delegate monitoring of cassette swaps in ATMs to a Committee of the Board, effective October 1, 2026. Previously, oversight was required at the Board level without delegation.
The modification, issued under DCM (RMMT) No.S 2107/20-02-002/2026-27, recognizes operational challenges in frequent Board meetings. The designated committee must include independent directors and report progress quarterly to the full Board.
Practitioner guidance: Bank legal teams should revise Board charters and internal policies to reflect the new delegation authority. Though monitoring is delegated, ultimate responsibility remains with the Board, as per corporate governance norms under the Companies Act, 2013 and RBI guidelines.
Citations
- RBI/2021-22/190
- RBI/2026-27/273
