The Reserve Bank of India on Wednesday clarified that transactions that fail due to technical reasons should not be counted as valid ATM transactions.
Technical reasons include hardware, software or communication issues, non-availability of currency notes, invalid PIN or validations and issues directly related to the bank or white-label ATM, the banking regulator said.
As a result, neither banks nor white-label ATM operators should charge the customer for any failed transaction, the RBI said.
The central bank said it has found instances of failed ATM transactions being included in the number of “free ATM transactions” provided by banks and other service providers.
Non-cash withdrawal transactions like balance enquiry, cheque book requests, or funds transfer services conducted on an ATM should also not be part of the number of free ATM transactions that are provided, the RBI said, adding that these non-cash transactions constitute “on-us” transactions or services provided by a bank to its customers.
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