RBI modifies its ATM cassette swap directive, permitting boards of banks to delegate monitoring responsibilities to internal oversight committees. The change enhances operational flexibility while maintaining security standards.
RBI Allows Board Delegation for ATM Cassette Swap Monitoring
On October 1, 2026, the Reserve Bank of India updated its guidelines on ATM cassette swaps, modifying Paragraph 3 of Circular RBI/2021-22/190. The revised directive, RBI/2026-27/273, permits banks to delegate monitoring responsibilities for cassette swap implementation to a Committee of the Board.
Cassette swaps—pre-loading ATM cassettes with currency at central cash centers—improve ATM uptime and reduce on-site cash handling. The original 2022 circular required direct board oversight. The modification recognises improved internal control mechanisms and allows operational streamlining without compromising security.
"Monitoring the progress of implementation of cassette swap may be delegated by the Board to a Committee of the Board. The Committee shall review the progress, including challenges, on a regular basis and report to the Board."
Legal advisors must ensure that designated committees have adequate governance frameworks and audit trails. This adjustment supports digital banking resilience while balancing oversight with operational autonomy.