DBOD No. BL.BC. 62 /22.01.001/2002

January 28, 2002
Magha 8, 1923 (Saka)

All Scheduled Commercial Banks
[ Excluding RRBs ]

Dear Sir

Section 23 of Banking Regulation Act, 1949 -
Third Party advertisement on ATM Network
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We have been receiving requests from banks to permit them to display products and services of manufacturers / dealers / vendors on their ATM screens for a fee. 0n examination, it is observed that the activity of displaying the products of other manufacturers / dealers / vendors on ATM screens by banks for a fee amounts to advertising which is not a permitted activity in which a bank can engage under section 6 (1) of the Banking Regulation Act, 1949.

We, therefore, advise that banks should not undertake such activities on their ATM Network. There is, however, no objection to banks utilising the ATM screens for displaying their own products.

Yours faithfully

( R. C. Mittal )
General Manager