Every month banks provide certain number of free transactions at ATMs to their customers and exceeding which charges are imposed. Reserve Bank of India (RBI) has asked banks not to count failed transactions at ATMs due to technical reasons as part of ‘free ATM transactions’ permitted every month.
Circular issued by RBI
The central bank has issued a circular in this regard which comes after it came to RBI’s notice that transactions that have failed due to technical reasons or even non-availability of currency in ATMs are also included in number of free ATM transactions.
RBI clarified that transactions which fail on account of technical reasons such as non-availability of cash, hardware and software issues and any other reason which is attributable to bank, should not be counted as valid ATM transactions for customer and therefore, no charges shall be levied.
Besides these, if the ATM is used for non-cash withdrawal transactions such as balance enquiry, cheque book request, payment of taxes, funds transfer, etc. which constitute ‘on-us’ transactions (i.e. when a card is used at an ATM of same bank which has issued card) should also not be part of number of free ATM transactions facility given to a customer.
Month:Current Affairs – August, 2019
Categories: Business, Economy & Banking
Tags: ATM Charges • ATM Transaction • free ATM transactions • RBI Circular • Reserve Bank of India
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