New rules on ATM usage

Couple of weeks back I have published an article about the ATM usage. In that article I have written about the new changes announced by RBI for the transactions conducted in the ATM. Here this article, consolidate all the changes or rules announced related to ATM usage. Most of the customers has the thinking of ATM is only used for the cash transactions. But, it has several other benefits which can be avoided by directly visiting the bank’s branch. RBI is looking to increase the use of ATM machines to avoid crowd in the branches. This would also increase the customers satisfaction. If you have any thoughts, please post it in the comments section. Subscribe to our future articles here.

also read:

• Removal of cash retract feature in ATMs
• RBI has announced changes on ATM Transactions fees
• RBI permits non-bank companies to set-up ATM

List of Changes announce by RBI

The following are the list of changes announced by RBI.

• Beginning 1st July, 2011 five free transactions allowed in the third party ATMs. The free transactions include financial and non-financial transactions. Previously, all the non-financial transactions are free and five cash transactions are charged. For example, HDFC bank charges Rs. 20 per transaction for cash withdrawal and Rs. 8.50 for non-financial transactions from customers who exceed the free usage limit.
• For instance, IndusInd Bank, for savings account holders who maintain an average balance of Rs.10000 or more, all third part ATM transactions are free.For other, charging Rs. 20 for cash transaction and Rs. 10 for other transactions. Basically it is up to banks to decide the fees on the transactions. RBI set the cap on free limit, after that banks will decide the charges and some banks would allow the free transactions if the customers meet specified criteria.
• All the transactions (online, shops or ATMs) done using the card must be sent alert notifications to the registered mobile number. Previously the minimum transactions amount is set to Rs.5000 to send the notifications. From 1st July, every transactions must be notified to the customer. This would avoid the fraud using the card like misuse, stolen,etc.
• As per RBI guidelines, if there is any failure in the ATM transactions and your account got wrongly debited the amount,bank will have to credit such wrongly debited amounts within a period of 7 working days from the date of the complaint. The Bank will pay Rs.100/- per day beyond 7 working days only if the complaint is lodged within 30 days of the date of the transaction. Prior to this, banks are given 12 days to rectify there errors.
• Another important change mandated by the RBI is to ask the PIN number for every new transaction. For example, you have withdrawn Rs.5000 cash and would like to continue another transaction without taking the card from ATM. But, you have to enter the PIN every new transactions. Previously, you can continue many number of transactions by entering the PIN only once.
• Apart from the RBI mandated services, banks have introduced the number of innovative transactions in the ATMs to facilitate the customers. For example, HDFC ATM offers tax payment through their ATM.
• Update: Retract of currencies from ATM machines have been stopped.

Summary

The above rules are newly introduced by the RBI to facilitate the customers. ATMs not just used for the cash transactions, there are many other useful facilities available for the customers. In the coming days, there would be lot more features will be available through ATMs. Hope this article helped the readers to understand the changes introduced in the ATM machines. If you have any thoughts please post it in the comments section.

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