RBI relief to customers on ATM transactions

RBI relief to customers on ATM transactions

Photo for representation.

In a big relief to the millions of customers across the country, the Reserve Bank of India (RBI) has directed banks not to charge the users of automated teller machines (ATMs) for the failed transactions.

It has come to our notice 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, the central bank said in a circular issued Wednesday evening.

"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, shall not be counted as valid ATM transactions for the customer. Consequently, no charges therefor shall be levied," it said.

The bank also said that the non-cash withdrawal transactions such as balance enquiry, 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, it added.