Did you know that the first ATM machine in India was set up by HSBC in Mumbai in 1987?
The ATM has become the de-facto touchpoint between the customers and the bank. I doubt if any millennial appreciates just how much this machine that they take for granted has changed our lives. Some of us may still remember getting our first ATM cards and the excitement of making our first automated money withdrawal.
Did you know that the first ATM machine in India was set up by HSBC in Mumbai in 1987.
Why are ATMs in the news now?
The banking controller, Reserve Bank of India (RBI) has clarified some rules for the customers on free ATM transactions. Most banks provide a certain number of free ATM transactions every month and levy a nominal charge beyond that. The clarification by the apex bank was issued on 14 August after a six-member committee reviewed the existing ATM intercharge fee structure levied by various banks.
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For example, as of now, State Bank of India offers eight free transactions to its regular savings bank account holders of which five transactions are withdrawals from SBI ATMs and three from another bank ATM’s.
What counts as a ‘transaction’ on an ATM?
Typically, the most common transactions include:
- Cash Withdrawal
- Balance Enquiry
- Change of PIN
- Retrieval of Mini Statement
What has the RBI clarified?
Transactions, which fail on account of technical reasons like hardware, software, and communication issues, shall not be counted as valid ATM transactions of the customer. Furthermore, other failed ATM transactions like non-availability of currency notes in the ATM, declined transactions attributable to the bank or service providers will also not be taken as valid ATM transactions.
Invalid PIN or validation would henceforth not amount to a valid ATM transaction either.
If the transaction involves a non-cash withdrawal at ATMs like cheque book request, balance enquiry, funds transfer or payment of taxes, it shall also be counted as free ATM transactions.
(Edited by Saiqua Sultan)