In a major relief to bank customers, the Reserve Bank of India (RBI) has directed all the banks not to charge them for failed ATM transactions by considering them as a breach on the limit on the number of free transactions.

The Reserve Bank said it was brought to its notice that the transactions that have failed either due to technical reasons or due to non-availability of currency are also being included in the number of free ATM transactions.

On Wednesday evening the RBI in its circular said “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; etc., shall not be counted as valid ATM transactions for the customer. Consequently, no charges therefor shall be levied.”

Consequently, the Reserve Bank of India also said non-cash transactions like balance inquiry, cheque book requests, payment of taxes, funds transfer and others which constitute ‘on-us’ transactions (that is when the card is used at the ATM of the bank that issued the card) shall not be part of free ATM transactions.

The above directions applies to all Scheduled Commercial Banks (SCBs) including Regional Rural Banks, Urban Cooperative Banks, State Co-operative Banks, District Central Cooperative Banks, Small Finance Banks, Payment Banks and also While label ATM operators.


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