FROM JULY 1, NON-FINANCIAL ATM TRANSACTIONS TO ATTRACT FEE

Come July 1, 2011, bank customers will be charged for making a balance enquiry and taking a mini-statement if they exceed the limit of five free transactions at other bank ATMs.

This step has been taken by the RBI in view of the rampant misuse of other bank ATMs for conducting non-financial transactions, such as making a balance enquiry and taking a mini-statement.

The RBI has decided that the time has come to discipline the customer.

The RBI, on Friday, said the number of free transactions (five) permitted per month at other bank ATMs to savings bank accountholders will be inclusive of all types of transactions, financial or non-financial.

Currently, non-financial transactions such as balance enquiry/taking mini-statement at other bank ATMs are free of cost to the customer even if they exceed the limit of five free transactions at other bank ATMs.

That customers were misusing the facility of free non-financial transactions at other bank ATMs is underscored by the fact that in the month of April, 28 per cent of the total volume of 13.79 crore transactions on the National Financial Switch was due to balance enquiry and mini-statement.

customer complaints

In a customer-friendly move, the RBI has reduced the time limit for resolution of customer complaints by the ATM card issuing banks from 12 working days to seven from the date of receipt of customer complaint.

Failure to re-credit the customer's account within seven working days of receipt of the complaint will entail payment of compensation to the customer at the rate of Rs 100 per day by the issuing bank, the RBI said in a notification on reconciliation of failed transactions at ATMs.

A customer is entitled to receive compensation for delay, only if a claim is lodged with the issuing bank within 30 days of the date of the transaction, the RBI said.

All disputes regarding ATM failed transactions should be settled by the issuing bank and the acquiring bank through the ATM system provider only.

No bilateral settlement arrangement outside the dispute resolution mechanism available with the system provider is permissible, the RBI said. This measure is intended to bring down the instances of disputes in payment of compensation between the issuing and acquiring banks.

SOURCE: http://www.thehindubusinessline.com/industry-and-economy/banking/article2054755.ece