Henceforth, ATMs are unlikely to run out of cash during industry-wide bank strike or other emergency as the Reserve Bank of India has decided to put in place a contingency plan.

In the event of a strike in the entire banking sector (excepting RBI) or in the event of any natural calamity in the region or country, banks can replenish cash at their ATMs by withdrawing cash from RBI, the central bank said in a notification.

The central bank has come up with the arrangement for feeding ATMs during strikes in banks / natural calamity as a customer service initiative.

The ceiling for withdrawal of cash under the RBI's contingency plan will be Rs 10 crore at a time i.e. per transaction, the central bank said.

However, depending upon the need for cash to be replenished in the ATMs, a bank may avail itself of this withdrawal facility more than once during the working hours on a particular day.

Banks can avail themselves of the cash replenishment facility for ATMs on the days of strike / natural calamity subject to conditions.

Among other conditions, banks have to enter into an agreement with the designated outsourcing agency.

Banks have to authorise the RBI through a standing instruction to debit their current accounts with it for handing over the cash to the outsourced agency appointed by them.

Banks also have to submit a letter stating that they desire to withdraw cash from their current account with RBI on that day as a special case.

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