RBI clarifies on free ATM transactions
MUMBAI: The Reserve Bank of India has told banks not to treat failed transactions at ATMs or non-cash transactions such as balance enquiries or chequebook requests as part of five free transactions available to customers every month.
“It has come to our notice that transactions that have failed due to technical reasons, non-availability of currency in ATMs, etc., are also included in the number of free ATM transactions,” RBI said in a circular to all scheduled commercial, cooperative and rural banks on Wednesday. These transactions are to be considered as failed transactions and no charges are to be levied for them.Read more ↓
“It is hereby clarified that transactions which fail on account of technical reasons like hardware, software, communication issues; non-availability of currency notes in the ATM; and other declines ascribable directly/ wholly to the bank / service provider; invalid PIN / validations; etc., shall not be counted as valid ATM transactions for the customer.”
Furthermore, non-cash withdrawal transactions such as balance enquiry, cheque book request, payment of taxes, funds transfer which constitute ‘on-us’ transactions shall also not be part of the of free ATM transactions given to customers, the central bank said.