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Finance

RBI comes to the Rescue, Saving you transaction fees on ATMs

The Reserve Bank of India or RBI last week come up with a new set of rules prescribing a turnaround time for banks to settle failed transactions, including failed ATM transactions where customer’s account was debited but cash was not dispensed. In such cases of failed ATM transactions, the RBI has specified compensation banks have to pay to their customers if the amount is not reversed within a specified time period. Earlier the RBI had said that failed ATM transactions due to non-availability of cash at ATMs, invalid PIN or other non-cash withdrawal transactions cannot be counted as free transactions.

The are over 2.2 lakh ATM machines in the country, according to RBI’s latest annual report.

1) According to new rules, if banks fails to reverse failed ATM transaction where account was debited but cash was not dispensed, banks have to pay a compensation of ₹100 per day if they don’t reverse the transaction within a maximum of T + 5 days. T refers to the day of transaction and refers to the calendar date. This rule also apply to such failed transactions at micro-ATMs.

2) The RBI had last month clarified that ATM transactions that fail due to technical reasons like hardware, software, communication issues cannot be counted under valid transactions. Many banks offer a fixed number of ATM transactions as free to their customers. Beyond that they charge customers. RBI said that banks cannot charge customers for these failed ATM transactions.

SBI, for example, allows free transactions to its customers at ATMs for 8-10 times in a month. Over and above these mandated number of free transactions, SBI charges a certain amount to its customers.

3) Also, ATM transactions that failed due to non-availability of currency notes in the machine cannot be counted as valid transactions and cannot be charged.

4) Other failed ATM transactions due to invalid PIN/validations, and other transaction declines attributable to the bank or services provider cannot be counted as valid transactions.

5) Non-cash withdrawal transactions from ATMs such as balance enquiry, cheque book request and funds transfer, as part of ‘on-us’ transactions, cannot be a part of the number of free ATM transactions, RBI said in a 14 August circular. On-us” transactions refer to where the debit card and ATM are of the of the same bank.

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xploringindia
Xploringindia is a administrator who has a keen interest in politics, fashion, and lifestyle. She is a post-graduate in Economics and loves to listen to classic old Hindi songs and travel to new places in her leisure time. Her writing is well researched, covering important aspects and core of the topic covering crucial points.
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