WTF Is A Cash Recycler?

Just how ATMs have made anytime withdrawals a possibility,  cash recyclers have made anytime deposits a reality. But what are these machines and why aren’t there more of these around the country, let’s find out:

#1. What is a cash recycler machine?

Cash Recycler.gif

Looks somewhat like an ATM but is much more useful than that. It not only dispenses cash but also accepts it. So the next time you feel unsafe roaming around with a bundle of notes you know where to stash it: At the nearest cash recycler.

 Like ATMs that reflect your account balance immediately when you withdraw money, cash deposits also takes place in real time and the transaction immediately gets reflected in your bank account. 

Besides deposits and withdrawals, the machine also allows you to change your PIN number, check your account balance and view a mini 10 transaction bank statement.

The mechanics of a cash recycler are pretty simpleThe banknotes are placed into a feeder and passed through a bill identifier to authenticate the denomination and validity of the notes. This cash is then stored in separate cassettes or modules for dispensing it to someone who withdraws cash. In this way the money according to its name is recycled i.e. reused going from one person to another.

#2. How to use it?

Cash Recycler Machine.gif

To use the recycler for cash withdrawal, you can use an ATM card or a debit card like you normally do for any ATM transaction. However, in case you want to deposit money through a cash recycler, you have to be a customer of the specific bank that is running the cash recycler. For instance, if you are a Bank of India customer, you can deposit your cash only at a Bank of India cash recycler. You can also deposit the money to someone else’s account in that  bank.

There are two ways to deposit money through this:

#1. By inserting your ATM or debit card: Through this option you can deposit up to Rs. 2 lakh per day if your Permanent Account Number (PAN) is registered with your bank. 

#2. By entering your account number: Through this option you can deposit only up to Rs. 20,000 per day.

#3. What are the rules for this?

Torn notes

Rule No 1: The machine will most definitely not recycle or accept your torn, fake, or taped notes

Rule No 2: It usually accepts Rs.100, Rs.500 and Rs.2000 denomination notes only.

Rule No 3: You cannot hide your black money here because the machine is smarter than that. Only if your bank account is registered with PAN you can deposit Rs. 2 lakh per day. Otherwise only up to Rs. 50,000 can be deposited.

Rule No 4: If you exceed the limit prescribed by your banl, the cash recycler will reject the transaction.

Rule No 5: If you have an inactive bank account you will not be able to deposit through these machines.

#4. Is your money safe?


Only authorised users can control Cash Recyclers, others just have restricted access to it, which reduces the chance of internal theft and robbery. Some recyclers even have silent alarm triggers and specified hot-keys which when pressed, lock-down the units immediately. When it comes to managing and holding hard currency, security is vital, and cash recyclers can protect your money with top notch quality.

#5. Why aren’t there more of these?


Though recyclers reduce the operation costs of banks significantly the machine is pretty expensive compared to regular ATMs. The cost of maintaining these machines is also high. Besides the banks has to strategically place these machines around the city depending on their customers deposit-withdrawal ratios. Suppose a bank branch has lots of cash deposits from small businesses then installing a 24/7 cash recycler near these businesses would make sense.  But if some branches have clients who are majorly  salaried, they may have to withdraw more than deposit.

So the next time you see an ATM that accepts cash you know the exact term for it and how it can be used. 

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