New Delhi: In what comes as a good news for all ATM users across the country, the Reserve Bank of India (RBI) on Wednesday asked banks not to count failed transactions at ATMs due to technical reasons as part of 'free ATM transactions' limited given to customers every month. This means if you go to an ATM and there is no cash in the machine, then your respective bank cannot count that particular transaction in the free limited that it has set for monthly basis. Apart from this, the Central bank has also clarified that banks cannot include use of ATMs for balance inquiry and fund transfers as a part of the free transactions facility given to customers.
Different banks provide a certain number of free transactions at ATMs to their customers and beyond that impose charges on each transactions. The RBI's clarification in this regard comes after it has come to notice of the central bank that transactions that have failed due to technical reasons, non-availability of currency in ATMs are also included in the number of free ATM transactions.
"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. Consequently, no charges therefor shall be levied. " RBI said in an official statement.
"Consequently, no charges therefor shall be levied," the statement read further. Further, non-cash withdrawal transactions (such as balance inquiry, cheque book request, payment of taxes, funds transfer), which constitute 'on-us' transactions (when a card is used at an ATM of the bank which has issued the card) shall also not be part of the number of free ATM transactions.
Back in 2014, the RBI had issued a comprehensive circular on Free Usage of ATMs which had restricted total other bank free of charge ATM transaction limit in 6 cities including Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore to 3 per month. However, for other cities of the country, free transaction limit can be maximum 5 per month. This would include both cash as well as non cash transactions such as taking out mini statements, balance inquiries, PIN change requests and others.
Good News! RBI Asks Banks Not To Count Failed Transactions, Balance Inquiry As 'Free Transactions'
ABP News Bureau
Updated at:
14 Aug 2019 09:49 PM (IST)
Reserve Bank of India (RBI) on Wednesday asked banks not to count failed transactions at ATMs due to technical reasons as part of 'free ATM transactions' limited given to customers every month.
(Representative Image/ Getty)
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