Ans. An ATM is a computerised machine that provides customers of banks the facility of accessing their accounts for dispensing cash and to carry out other financial & non-financial transactions without the need to visit the bank branch.

Ans. ATMs set up, owned and operated by non-banks are called WLAs. Non-bank ATM operators are authorised under the Payment & Settlement Systems Act, 2007 by the Reserve Bank of India (RBI). The list of authorised WLA Operators is available on the RBI website at the link https://website.rbi.org.in/web/rbi/payment-and-settlements/other-links/information-useful-to-banks-fis/payment-system-operators

Ans. For a customer, using a WLA is just like using an ATM of any bank.

Ans. The rationale to allow non-bank entities to set up WLAs has been to increase the geographical spread of ATMs for increased / enhanced customer service, especially in semi-urban / rural areas.

Ans. In addition to dispensing cash, ATMs / WLAs may offer many other services / facilities to customers. Some of such services include:

• Account Information

• Cash Deposit

• Regular Bill Payment

• Purchase of Re-load Vouchers for Mobiles (not permitted at WLAs)

• Mini / Short Statement Generation

• PIN Change

• Request for Cheque Book

Ans. The ATM / ATM cum debit cards, credit cards and prepaid cards, as permitted by the issuer, can be used at ATMs/WLAs for various transactions.

Ans. For transacting at an ATM / WLA, the customer should traditionally have a valid card and Personal Identification Number (PIN). RBI has also allowed card-less withdrawals at ATMs.

Ans. PIN is the numeric password which is separately mailed / handed over to the customer by the bank while issuing the card. Most banks require the customers to change the PIN after the first use. Customers should not disclose PIN to anybody, including to bank officials. Customers should change the PIN at regular intervals.

Ans. Yes, the cards issued by banks in India can be used at any ATM / WLA in the country.

Ans. A transaction carried out at an ATM of the card issuing bank is called an On-Us transaction. A transaction carried out at any other ATM is called an Off-Us transaction. For instance, if a card issued by bank A is used at an ATM of bank A then it is an On-Us transaction; if the card is used at a WLA or at an ATM of any other bank, the transaction is Off-Us.

Ans. Yes, a bank must offer to its savings bank account holders a minimum number of free transactions at ATMs as under:

• Transactions at a bank’s own ATM (On-Us transactions) at any location: Banks should offer their savings bank account holders a minimum of five free financial transactions in a month, irrespective of the location of ATMs. Any number of non-cash withdrawal transactions will be provided free.
• Transactions at any other banks’ ATM (Off-Us transactions) at Metro locations: In case of ATMs located in six metro locations, viz. Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and New Delhi, banks shall offer their savings bank account holders a minimum of three free transactions (including financial and non-financial transactions) in a month.
• Transactions at any other banks’ ATM (Off-Us transactions) at non-Metro locations: At any location, other than the six metro locations as above, banks must offer its savings bank account holders a minimum of five free transactions (including financial and non-financial transactions) at other bank ATMs in a month.

Ans. RBI has mandated minimum number of free transactions at ATMs. Banks may offer more number of free transactions to their customers.

Ans. The above does not apply to BSBDA as the number of withdrawals from BSBDA is subject to the conditions associated with such accounts.

Ans. The prescription of number of free transactions is inclusive of financial and non-financial transactions at other bank ATMs. However, non-cash withdrawal transactions (such as balance enquiry, cheque book request, payment of taxes, funds transfer, etc.), on own bank ATMs are not to be part of the number of free ATM transactions. Similarly, transactions that 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 thereon shall be levied.

Ans. ATM installing banks have been advised to indicate clearly at each ATM location that the ATM is situated in a ‘metro’ or a ‘non-metro’ location using appropriate means (message displayed on the ATM / sticker / poster, etc.) to enable the customer to identify the status of the ATM in relation to availability of number of free transactions.

Ans. Yes, customers can be charged for transactions at ATMs over and above the mandated number of free transactions (as indicated in answer to Q. 11 above). Presently, these charges cannot exceed a maximum of Rs. 23/- per transaction (plus applicable taxes, if any) by his / her bank.

Ans. The service charges for the following types of cash withdrawal transactions are to be determined by the banks themselves: (a) cash withdrawal with the use of credit cards. (b) cash withdrawal in an ATM located abroad.

Ans. Though banks are supposed to reverse such transactions on their own, it is always a good practice to lodge a complaint with the card issuing bank or ATM owner bank at the earliest.

Ans. Banks / WLA Operators are required to display the name(s) and the contact number(s) of concerned officer(s) / toll free number(s) / help desk number(s) in the ATM premises.

Ans. In the case of a failed ATM transaction, the banks have been mandated to re-credit the customer’s account within a maximum of T+5 calendar days (where ‘T’ is the day of transaction).