- The central bank 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.
- 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 the bank which has issued the card) shall also not be part of the number of free ATM transactions, RBI added.
- Earlier in 2014, RBI mandated minimum number of free transactions at ATMs.
- The ATM charges apply depending on the type – whether it belongs to the same bank where the customer’s account is located or some other bank – and nature of ATM – whether the ATM is located in a metropolitan or any other city in the country.
- For transactions at bank’s own ATMs at any location, banks offer a minimum of five free transactions in a month.
- For transactions at any other bank’s ATM at six metro locations -Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad – banks offer a minimum of three free transactions in a month.
- However, if the card is used in other cities beyond the six metros in case of any other bank’s ATM, free transaction limit can be maximum five per month.
- Customers are charged for transactions at ATMs over and above the mandated number of free transactions.
- Currently, these charges cannot exceed a maximum of Rs 20 per transaction (plus applicable taxes, if any) by banks, according to RBI.
- These ATM transaction rule does not apply to Basic Savings Bank Deposit Account (BSBDA) as the number of withdrawals from BSBDA is subject to the conditions associated with such accounts.
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