Debit card, credit card users' bank ATM alert! RBI has good news - do not pay, if this happens
If you go to a bank ATM and there is no cash in it, then your bank cannot count this transaction in the free transaction limit that it has set.
If you go to a bank ATM and there is no cash in it, then your bank cannot count this transaction in the free transaction limit that it has set. RBI has clarified that because of any technical reason be it hardware or software, communication issue, wrong PIN entry or even non availability of cash in ATM, banks cannot count such transactions in the overall free transaction limit. In effect, no cash, no transaction!
RBI in its clarification said, "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 there for shall be levied."
RBI noted, "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 such as balance enquiry, cheque book request, payment of taxes, funds transfer etc from own customers shall also not be part of the number of free ATM transactions.
RBI had issued comprehensive circular on Free Usage of ATMs in 2014. Which had restricted total other bank free of charge ATM transaction limit in 6 Metros Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore to 3 per month. But if the card is used in 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 mini statement, balance enquiry, PIN change etc.
Most of the banks offer between 3 to 5 'other bank' free ATM transactions but for their own customers banks can offer unlimited number of free ATM transactions as per their policy. RBI has limited the maximum transaction charge to Rs 20 in case the number of free transaction exceeds the limit of 5 per month.