What is an Automated Teller Machine (ATM)?
Ans. 1. Automated Teller Machine is a
computerised machine that provides the customers of banks
the facility of accessing their accounts for dispensing
cash and to carry out other financial transactions without
the need of actually visiting a bank branch.
What type of cards can be used at an ATM?
Ans. 2. The ATM cards/debit cards,
credit cards and prepaid cards(that permit cashwithdrawal)
can be used at ATMs for various transactions.
Q. 3. What
are the services/facilities available at ATMs?
Ans. 3. In addition to cash dispensing
ATMs may have many services/facilities such as:
- Account information
- Purchase of Re-load Vouchers
- Mini/Short Statement
The services offered may vary
from bank to bank, or may depend on the capacity of the
machine to provide such services.
can one transact at an ATM?
Ans. 4. For transacting at an ATM, the
customer insert (swipe) their card in the ATM and enter
their Personal Identification Number (PIN).
Q.5. Can these
cards be used at any bank ATM in the country?
Ans. 5. Yes. The cards issued by banks in
India should be enabled for use at any bank ATM within
Q.6. What is a
Personal Identification Number (PIN)?
Ans 6. PIN is the numeric password for
use at the ATM. The PIN is separately mailed/handed over
to the customer by the bank while issuing the card. This
PIN has to be reset to a new PIN by the customer. Most
banks force the customers to change the PIN on the first
The PIN number should not be
written the card, card holder etc as in such cases the
card can be misused if card is lost/stolen.
Q. 7. What
should one do if he forgets PIN or the card is sucked in
by the ATM?
Ans. 7. The customer may contact the card
issuing bank branch and apply for retrieval/issuance of a
new card. This procedure is applicable even if the card is
sucked in at another bank's ATM.
Q. 8. What
should be done if the card is lost/stolen?
Ans. 8. The customer may contact the card
issuing bank immediately on noticing the loss so as to
enable the bank to block such cards.
Q. 9. Is
there any minimum and maximum cash withdrawal limit per
Ans. 9. Yes, banks set limit for cash
withdrawal by customers. The cash withdrawal limit for use
at the ATM of the issuing bank is set by the bank during
the issuance of the card. This limit is displayed at the
respective ATM locations.
For cash withdrawals at other
bank ATMs, banks have decided to maintain a limit of Rs
10,000/- per transaction. This information is displayed at
the ATM location.
Q. 10. Do banks
levy any service charge for use of other bank ATMs?
Ans.10. No charges are payable for using
other banks' ATM for cash withdrawal and balance enquiry,
as RBI has made it free under its "Free ATM access
policy" since April 01, 2009. But banks can restrict
the number of such free transactions to a maximum of five
per month. For transactions beyond this minimum number of
transaction, banks charge maximum of Rs 20/- per
Q. 11. What
should be done in case during the cash withdrawal process,
cash is not disbursed by the account gets debited for the
Ans.11. The customer may lodge a
complaint with the card issuing bank. This process is
applicable even if the transaction was carried out at
another banks ATM.
Q.12. How many
days maximum would the bank require to re-credit the
account for such wrong debits?
Ans.12. As per the RBI instructions,
banks may re-credit such wrongly debited amounts within a
maximum period of 7 working days from the date of receipt of customer complaint.
Q.13. Are the
customers eligible for compensation for delays beyond 7 working days?
Ans.13. Yes. Effective from July 1, 2011, banks shall have to pay customers Rs 100/- per day
for delays beyond 7 working days only if a claim is lodged with the issuing bank within 30 days from the date of the transaction.
Q.14. In case
the compensation is not credited as mandated, what
recourse does the customer have?
Ans. 14. For all such complaints customer
may lodge a complaint with the local Banking Ombudsman if
the bank does not respond.