New Delhi: The Reserve Bank of India (RBI) has proposed a new set of rules regarding turnaround time for banks to settle failed transactions, including those in which a customer, who tries to withdraw money from an ATM, has his account debited but no cash is dispensed.
The rules, which were proposed last week, specify the amount that banks have to pay to customers in case their money is not refunded within a specified period of time. Earlier, the RBI said that failed ATM transactions due to issues like shortage of cash, invalid PIN or other non-cash withdrawals can’t be considered as ‘free transactions’.
Here is what you need to know about the new rules:
- For those ATM transactions in which the customers’ account was debited but no cash was dispensed, banks will have to pay a compensation of Rs 100 per day, if they don’t refund the failed transaction within a maximum of five days after the day of the failed transaction.
- Those transactions which fail due to technical issues or communication problems will not be treated as valid transactions. Earlier, even for a failed a transaction after a customer had fulfiled his/her ‘free transaction’ limit, banks used to charge them. However, they won’t be able to do so now due to the reason mentioned earlier.
- Those transactions which fail in case there is no cash in the ATM machine, too, will not be treated as a valid transaction and hence cannot be charged
- Those transactions which fail due to ‘invalid PIN’ or due to reasons attributable to banks, too, shall not be treated as valid transactions.
- Transactions like balance inquiry, cheque book request, funds transfer etc. in case of debit cards and ATM being from the same bank, too, won’t be chargeable.
Established on January 1, 1935, the Reserve Bank of India is the country’s central banking institution which controls the issuance and supply of the Indian rupee. It is headquartered in Mumbai.
As per its annual report, there are 2.2 lakh ATMs in India.