August 14, 2019 / 21:54 IST
The Reserve Bank of India (RBI) has asked lenders not to count failed and non-cash withdrawal swipes at Automated Teller Machines (ATMs) as part of free transactions offered to customers.
Typically, banks allow five free ATM transactions per month to customers, after which they are charged a fee on every extra swipe. The banking regulator said banks were including transactions that failed due to technical reasons or non-availability of currency in the machines in the five free transactions.
Card swipes to check bank balance, make cheque book request, payment of taxes and funds transfers should also not be part of the number of free transactions by the issuer bank.
RBI also clarified that banks should not levy charges on failed and non-cash withdrawal transactions at ATMs.
Every year, the most number of customer complaints received by the RBI's banking ombudsman is ATM and debit card-related. Of these, about 60 percent come from instances where the account is debited but cash is not dispensed by the ATM, according to RBI data.
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