IIBF DIGITAL BANKING | CASH RE-CYCLERS

DIGITAL BANKING | CASH RE-CYCLERS

In this article, we will get an overview of Cash Re-cyclers, some features of these cash re-cyclers, the risk & frauds related to them, etc.

WHAT IS A CASH RECYCLER?

A cash recycler machine is a self-service machine that lets us deposit and withdraw cash. All these deposit and withdrawal transactions get updated in the customer’s account in real-time and these recycler machines issues slip of acknowledgment confirming the successful as well as unsuccessful transactions. 

It is a complex machine but handles important ask such as accepting and dispensing cash. It also does the function of storing money and keeping it safe, keeping an account of cash on hand & automating the cash cycle. These cash recyclers can be found with banks & financial institutions etc.

WORKING OF CASH RECYCLER

Although a cash recycler is a complex machine it provides a holistic approach to cash management by way of automating & streamlining the manual cash handling processes. All this impacts every process & person in a financial institution. 

If we talk about the working of cash recycler, then money (currency notes) a please into a feeder which then passes through a bill identifier so as to determine the denomination of the notes and their validity. 

These currency notes are then get stored in separate modules so that they can be dispensed in future transactions. Thus, the definition of recycling is where the deposited cash gets this dispensed to be used. 

This is cycling process of cash has improved staff productivity and operational efficiency while reducing the labor and cash handling costs, thereby, that the controls on cash and cash inventory. 

HOW DOES IT WORK? 

A person who has a debit or a credit card can use the cash recycler machine to withdraw money. It is as simple as that. The withdrawer also gets his or her updated account balance in the transaction receipt.

FEATURES OF CASH RECYCLERS

• Underwritten are some of the features of cash recyclers: 
• These recycler machines accept currency notes from customers and dispense as well. 
• To ensure the genuineness of currency, these machines are supported with Bill we will get to Bill Validation Technology. 
• These machines are able to recognize and retain counterfeit notes with 100% accuracy while keeping the trace serial number of the currency notes to customers’ accounts. In this way, the counterfeit notes can be traced to the count of customers. 
• These cash recycler machines allow cash deposit through a debit card to the amount of Rs.2,00,000.00 per day if the customers have deposited their PAN and, in another case, (where they have not deposited their PAN) to the amount of Rs. 50,000.00 
• These cash recycler machines also allow card-less transactions to the amount of Rs.20,000 per day feeding his or her account number 
• Deposit over and above the prescribed limit gets rejected by the cash recycler and the notes fed into the machine are presented back to the customer. 
• While performing the cash deposits, the machine counts the notes and the count gets displayed with the denomination wise as well as the total amount that is inserted in the machine for deposit. After that, the customer is also asked to confirm the same. 
• These machines also feed any fake notes or suspicious notes whose receipt is given to the customer 
• The recycler machine doesn’t accept any torn, mutilated, or currency notes. 
• The rupee notes up denominations of Rs.2000, Rs.500 & Rs.100 are accepted with these machines. 
• The cash recycler I as well belong to anyone bank where any other bank’s customer can also do the transactions. Although, not all the transactions are allowed to the other bank customers cash withdrawal facility is available to all banks’ customers. 
• These cash withdrawals are allowed through NFS, VISA, MasterCard, Discover, JCB, and UnionPay cards. 
• Deposits are not allowed in inactive accounts.

OTHER SERVICES AVAILABLE ON CASH RECYCLER

There are many other services that a bank customer can do on cash recycler machines. Some of them are described below: 

• Change of PIN: One can also change their PIN number as and when they want. 
• Balance Enquiry: One can easily enquire about the balance in their saving or current account with the help of these machines. It will show the customer the balance that is in their account which is linked to their debit card 
• Mini-account statement: One can also get a mini statement of their account to keep track of their transactions. One can get an insight into the last 10 transactions that are linked to their accounts.

BENEFITS OF CASH RECYCLERS

While serving the customers, these recycling machines benefit hugely to the banks. These have added speed and efficiency to the banking system due to various benefits that it provides. Some of them are discussed below: 

Save Times of Employees: Now that the cash cycle has been automated i.e the process of acceptance, count, storage, and dispensing different denominations while doing all these functions quickly and accurately, the bank staff is burdened with lesser transactions to deal with. Thus, the processes have reduced the need for vault transactions and have cut the time for tellers and cashiers.

Reduction of Fraud. All the currency notes that are deposited into the cash recycler machine pass through the Bill identification process so as to check the denomination and the validity of the currency notes. If the machine finds any counterfeit or illegible notes, they get pushed out into the rejection bin. This way, only after full screening do the currency notes get deposited in the in-recycling bins of the machine.

Lowers the Risk of Shrinkage: Because the cash recycler machines operate within a branch (as a vault extension), the connection to the bank’s computer network. Therefore, the inventory of cash gets updated in real-time. With this, cashiers or tellers do not need to move cash from centralized locations. All this has reduced the instances of committing mistakes in counting and cash management.

Increases Security: These recycling machines are installed with an alarm system. And furthermore, these machines are preset to dispense a specific amount of cash to satisfy a robbery demand quickly so as not to allow exposure of all the cash inventory.

Consumer Experience: This recycling process at the ATMs has brought a new level of consumer experience. This automated cash handling has reduced the errors which have resulted in reduced cases of conflicts. They also have minimal rejection rates & bring a better consumer experience.

Thus, the cash recyclers keep the money safe, reduce losses, provide better service to customers while doing all this at affordable fees or charges.

CASH RECYCLER vs. CASH DISPENSERS

The basic difference lies in the functionality between a cash dispenser and a cash recycler. While a cash dispenser only dispenses cash their recycle can dispense as well as accept the cash. This way cash recycling ATMs are more advanced than cash dispenser ATM. Cash recycling has allowed the cash deposited by the customers to be used for withdrawal making the more efficient and post-saving machines. They also require less frequent transit visits.