Debit card, credit card user' alert: If you are a Debit card or Credit card user and go to bank ATMs for cash withdrawal then there is good news for you from Reserve Bank of India (RBI). As per RBI's latest notification if you visit bank ATM for cash withdrawal and there is no cash in it, then your bank cannot count this transaction in the free transaction limit that it has set.
According to reports, RBI has clarified that due to any technical reason----be it hardware or software or wrong PIN entry or communication issue or even non-availability of cash in ATM, any public or private sector banks cannot count such transactions in the overall free ATM transaction limit. So it means--- 'no cash, no transaction!'
"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. Consequently, no charges therefor shall be levied," RBI in its clarification said.
"It has come to the notice that transactions that have failed due to technical reasons, non-availability of currency in ATMs, etc., are also included in the number of free ATM transactions by banks". RBI further clarified that Non-Cash withdrawal transactions---- balance enquiry, cheque book request, funds transfer, payment of taxes, etc from home (same bank) customers shall also not counted as the number of free ATM transactions," RBI noted.
Reportedly, in 2014, RBI had issued a comprehensive circular on 'Free Usage of ATMs'. Which had restricted total another bank free of charge ATM transaction limit in 6 Metros that are---Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore to 3 per month.
However, if the debit or credit card is used in bank ATMs in any other cities beyond the 6 Metros, free transaction limit can be maximum 5 per month. It will include cash as well as non-cash transactions like a mini statement, balance enquiry, PIN change etc.
Although, most of the private or public sector banks offer between 3 to 5 'other bank' free ATM transactions. As per RBI advisory for their own customers, banks can offer unlimited free ATM transactions in a month as per their policy. Meanwhile, RBI has limited the maximum transaction charge to Rs 20 in case the number of the free transaction at any bank ATM exceeds the limit of 5 per month.