Wednesday, July 13, 2011

ATM Rules Changed: Banks to Charge Customers on Transactions

ATM Rules Changed: Banks to Charge Customers on Transactions

Daijiworld Media Network – Mangalore (SP)

Mangalore, Jul 1: Under pressure from banks like State Bank of India which have a vast network of Automated Teller Machines (ATM) across India, Reserve Bank of India (RBI) has ammended rules governing ATM operations. The grouse of bigger banks is that the customers of various other banks which do not have good ATM network, frequently use their ATMs, resulting in increased ATM maintenance burden on them.

As per the new rules, which have come into effect from Friday July 1, customers can operate their account through other bank ATMs free of cost up to five times a month. The restriction that these five transactions cannot exceed Rs 50,000 per month has also been enforced, with the added clause that other non-financial transactions like balance inquiry, PIN change, and mini statement also are counted in these five transactions, unlike earlier.

At the same time, RBI has stipulated that the banks should credit amounts that remain without being dispensed by the ATMs during attempts by customers because of technical problems into the respective accounts within seven working days from the date of receipt of complaint, instead 12 days stipulated earlier. For each day’s delay thereof, banks will be penalized Rs 100 a day, and the customers need to file their complaints in this respect within 30 days.

As earlier, free services from other bank ATMs will continue to be available only for savings bank account holders and not others. Every transaction over and above the stipulated five will be charged. HDFC Bank has announced that it will charge Rs 20 for every transaction above five per month, and Rs 8.50 per each non-financial transactions. Other banks are also expected to follow suit.

The banks have also been asked to update the customers about the transactions in their accounts through emails and SMS alerts, irrespective of the value of the account. In the past, only transactions above certain limits were conveyed to the customers by banks.

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