August 14, 2019

All Scheduled Commercial Banks including Regional Rural Banks /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks / Small Finance Banks /
Payment Banks / White Label ATM Operators

Madam / Sir,

Usage of ATMs – Free ATM transactions – Clarifications

Please refer to our circulars DPSS.CO.PD.No. 316/02.10.002/2014-2015 dated August 14, 2014 and DPSS.CO.PD.No. 659/02.10.002/2014 -2015 dated October 10, 2014 on the subject.

2. It has come to our notice that transactions that have failed due to technical reasons, non-availability of currency in ATMs, etc., are also included in the number of free ATM transactions.

3. It is hereby clarified that transactions which fail on account of technical reasons like hardware, software, communication issues; non-availability of currency notes in the ATM; and other declines ascribable directly / wholly to the bank / service provider; invalid PIN / validations; etc., shall not be counted as valid ATM transactions for the customer. Consequently, no charges therefor shall be levied.

4. Non-cash withdrawal transactions (such as balance enquiry, cheque book request, payment of taxes, funds transfer, etc.), which constitute ‘on-us’ transactions (i.e., when a card is used at an ATM of the bank which has issued the card) shall also not be part of the number of free ATM transactions.

5. This directive is issued under Section 10(2) read with Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).

Yours faithfully

(P Vasudevan)
Chief General Manager

RBI/2018-19/138
DPSS.CO.OD.No.1916/06.07.011/2018-19

March 7, 2019

The Chairman and Managing Director / Chief Executive Officer
All Scheduled Commercial Banks including RRBs /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks /
Authorised ATM Network Operators /
Card Payment Network Operators /
White Label ATM Operators

Madam / Dear Sir,

White Label ATMs (WLAs) in India – Review of Guidelines

Please refer to our circulars DPSS.CO.PD.No.2298/02.10.002/2011-2012 dated June 20, 2012, DPSS.CO.PD.No.1088/02.10.003/2013-14 dated November 14, 2013, DPSS.CO.PD.No.1025/02.10.003/2014-2015 dated December 5, 2014 and DPSS.CO.PD.No.1621/02.10.002/2016-17 dated December 30, 2016prescribing the guidelines / instructions for setting up, owning and operating White Label ATMs (WLAs) in the country.

2. On a review of operations of WLAs and representations received from stakeholders, as also to enhance the viability of WLAs, it has been decided to allow the WLA Operators to : –

1. buy wholesale cash, above a threshold of 1 lakh pieces (and in multiples thereof) of any denomination, directly from the Reserve Bank (Issue Offices) and Currency Chests against full payment.
2. source cash from any scheduled bank, including Cooperative Banks and Regional Rural Banks.
3. offer bill payment and Interoperable Cash Deposit services, subject to technical feasibility and certification by National Payments Corporation of India (NPCI).
4. display advertisements pertaining to non-financial products / services anywhere within the WLA premises, including the WLA screen, except the main signboard. It shall be ensured that the advertisements running on the screen disappear once the customer commences a transaction.

3. The permission to WLA Operators to source cash from retail outlets, accorded vide circular DPSS.CO.PD.No.1621/02.10.002/2016-17 dated December 30, 2016, stands repealed.

4. Further, banks may issue co-branded ATM cards in partnership with the authorised WLA Operators and may extend the benefit of ‘on-us’ transactions to their WLAs as well.

5. All guidelines, safeguards, standards and control measures applicable to banks relating to (a) currency handling, and (b) cyber-security framework for ATMs, shall also be applicable to the WLA Operators.

6. This directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act, 2007 (Act 51 of 2007).

Yours faithfully,

(P Vasudevan)
Chief General Manager

RBI/2016-17/106
DCM (CC) No.1170/03.41.01/2016-17

November 02, 2016

The Chairman & Managing Director /
Chief Executive Officer,
All Banks

Madam / Dear Sir,

Dispensation of Rs.100 denomination banknotes through exclusive ATMs

Please refer to our circular DCM (CC) G-10/3352/03.41.01/2015-16 dated May 5, 2016 on the Currency Circulation and Exchange Scheme (CDES).

2. A review of steps taken by banks for installing ATMs dispensing lower denomination banknotes was conducted and found that very few banks had taken initiatives in setting up ATMs dispensing lower denomination notes including Rs.100 denomination banknotes.

3. In keeping with the objectives of Clean Note Policy and to ensure that genuine requirement of members of public for Rs. 100 denomination banknotes are met, the banks should increase dispensation of Rs. 100 banknotes through ATMs which are widely used for distribution of banknotes for retail use.

4. With a view to encourage the banks in that direction, it has been decided to conduct a pilot project wherein 10% of the ATMs in the country will be calibrated to dispense Rs.100 banknotes exclusively. You are, therefore, advised to configure / calibrate 10% of your ATMs to facilitate this arrangement.

5. As the process involved in configuring the requisite number of machines is not complex, the banks are required to complete the exercise within 15 days from the date of the circular and report compliance. For this purpose, banks are free to select the branches with the sample covering relatively large number of centres / states. The data on location of such ATMs in the annexed format may also be advised to us. You may share your feedback on the pilot after a lapse of two months.

4. Kindly acknowledge receipt.

Yours faithfully,

(P. Vijaya Kumar)
Chief General Manager

Encl : As above

Annex

Dispensation of Rs.100 denomination banknotes through exclusive ATMs

Name of the bank –

(To be sent by email)

Q.1. What is an Automated Teller Machine (ATM)?

Ans 1. Automated Teller Machine is a computerized machine that provides the customers of banks the facility of accessing their account for dispensing cash and to carry out other financial & non-financial transactions without the need to actually visit their bank branch.

Q.2. What are White Label ATMs (WLAs)?

Ans 2. ATMs set up, owned and operated by non-banks are called White Label ATMs. Non-bank ATM operators are authorized under Payment & Settlement Systems Act, 2007 by the Reserve Bank of India.

Q.3. What is the difference between ATM and WLA (White Label ATM)?

Ans 3. i) In White Label ATM scenario, logo displayed on ATM machine and in ATM premises pertain to WLA Operator instead of a bank. However, for a customer, using WLA is just like using the ATM of other bank (bank other than card issuing bank). ii) Acceptance of cash deposits at the WLAs is not permitted at present.

Q.4. What has been the rationale of allowing non-bank entities for setting up of WLAs?

Ans 4. The rationale of allowing non-bank entity to set up White Label ATMs has been to increase the geographical spread of ATM for increased / enhanced customer service.

Q.5. What type of cards can be used at an ATM/WLA?

Ans 5. The ATM/ATM cum debit cards, credit cards and open prepaid cards (that permit cash withdrawal) issued by banks can be used at ATMs/WLAs for various transactions.

Q.6. What are the services/facilities available at ATMs/WLAs?

Ans 6. In addition to cash dispensing, ATMs/WLAs may offer many other services/facilities to bank customers. Some of these services include:

• Account Information
• Cash Deposit (Acceptance of deposits are not permitted at WLAs)
• Regular Bills Payment (not permitted at WLAs)
• Purchase of Re-load Vouchers for Mobiles (not permitted at WLAs)
• Mini/Short Statement
• PIN change
• Request for Cheque Book

Q.7. How can one transact at an ATM/WLA?

Ans 7. For transacting at an ATM/WLA, the customer inserts /swipes his/her Card in the ATM/WLA and enters his/her Personal Identification Number (PIN). Usually the transactions are menu driven for facilitating easy operation.

Q.8. What is Personal Identification Number (PIN)?

Ans 8. PIN is the numeric password which is separately mailed / handed over to the customer by the bank while issuing the card. Most banks require the customers to change the PIN on the first use. Customer should not disclose PIN to anybody, including to bank officials. Customers should change the PIN at regular intervals.

Q.9. Can these cards be used at any bank/non-bank ATM (WLA) in the country?

Ans 9. Yes. The cards issued by banks in India may be used at any bank / white label ATM in the country.

Q.10. Are customers entitled to any free transactions at ATMs?

Ans.10. Yes. With effect from November 01, 2014, a bank must offer to its savings bank account holders a minimum number of free transactions at ATMs as under:

1. Transactions at a bank’s own ATMs at any location: Banks must offer their savings bank account holders a minimum of five free transactions (including both financial and non-financial) in a month, irrespective of the location of ATMs.
2. Transactions at any other banks’ ATMs at Metro locations: In case of ATMs located in six metro locations, viz. Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad, banks must offer their savings bank account holders a minimum of three free transactions (including both financial and non-financial transactions) in a month.
3. Transactions at any other banks’ ATMs at Non-Metro locations: At other locations, banks must offer the savings bank account holders a minimum of five free transactions (including both financial and non-financial transactions) in a month at other bank ATMs.

RBI has mandated only the minimum number of free transactions at ATMs. Banks may offer more number of transactions free of cost to their customers.

The above does not apply to Basic Savings Bank Deposit Accounts (BSBDA) as withdrawals from BSBDA are subject to the conditions associated with such accounts.

Q.11. Are customers charged for any transaction at ATMs?

Ans 11. Yes, customers can be charged for transactions at ATMs over and above the mandated number of free transactions (as indicated in answer to Q.10 above). In case a bank decides to levy charges, the customer can be charged a maximum of Rs. 20/- per transaction (plus service tax, if any) by his/her bank.

Q.12. What should be done if card is lost / stolen?

Ans 12. The customer should contact the card issuing bank immediately on noticing the loss / theft of the card and should request the bank to block the card.

Q.13. From where the customer can get the contact numbers for lodging a complaint?

Ans 13. Banks are required to display the name and the contact numbers of concerned officers/toll free numbers /help desk numbers in the ATM premises. Similarly, in WLAs, contact number of officials/toll free numbers/ helpline numbers are also displayed for lodging any complaint regarding failed/disputed transactions.

Q.14. What steps should a customer take in case of failed ATM transaction at other bank/white label ATMs, when his / her account is debited?

Ans 14. The customer should lodge a complaint with the card issuing bank at the earliest. This process is applicable even if the transaction was carried out at another bank’s/non-bank’s ATM. In case of WLAs, the contact number/toll free numbers are also available for lodging complaints regarding failed transactions at their ATMs.

Q.15. Is there any time limit for the card issuing banks for recrediting the customers account for a failed ATM/WLA transaction indicated under Q. No. 14?

Ans 15. As per the RBI instructions (DPSS.PD.No.2632/02.10.002/2010-2011 dated May 27, 2011), banks have been mandated to resolve customer complaints by re-crediting the customer’s account within 7 working days from the date of complaint.

Q.16. Are the customers eligible for compensation for delays beyond 7 working days?

Ans 16. Yes. Effective from July 1, 2011, banks have to pay compensation of Rs. 100/- per day for delays in re-crediting the amount beyond 7 working days from the date of receipt of complaint for failed ATM transactions. The compensation has to be credited to the account of the customer without any claim being made by the customer. If the complaint is not lodged within 30 days of transaction, the customer is not entitled for any compensation for delay in resolving his / her complaint.

Q.17. What is the course of action for the customer if the complaint is not addressed by his/her bank within the stipulated time / not addressed to his/her satisfaction?

Ans 17. The customer can take recourse to the Banking Ombudsman, if the grievance is not redressed by his/her card issuing bank.

Q.18. What is the Grievance Redressal Mechanism available to users of WLAs in case of failed/disputed WLA transactions?

Ans 18. The Grievance Redressal Mechanism available to users of WLA is same as that available to users of banks’ ATMs for failed/disputed transactions. While the primary responsibility to redress grievances of customers relating to failed transactions at such WLAs will vest with the card issuing bank, the sponsor bank will provide necessary support in this regard, ensuring that White Label ATM Operator (WLAO) makes available relevant records and information to the Issuing bank.

Q.19. What should be done to the ATM card when the card is expired or the account is closed?

Ans 19. Customer should destroy the card upon card expiry or closure of account, cut it into four pieces through the magnetic strip/chip before disposing it off.

Q.20. How shall the customer keep his/her ATM/WLA transaction secure?

Ans 20. Customers should observe following Do’s and Don’ts to keep their transaction safe and secure at ATM/WLA:

• Customer should conduct any ATM/WLA transaction in complete privacy.
• Only one card holder should enter and access ATM/WLA kiosk at a time.
• He/she should never lend his/her card to anyone.
• Do not write PIN on the card.
• Never share PIN with anyone or seek help from anybody by handing over the card and revealing the PIN.
• Never let anyone see the PIN while it is being entered at the ATM
• Never use a PIN that could be easily guessed. e.g. his/her birthday, birthday of spouse or telephone number.
• Never leave card in the ATM/WLA.
• Register mobile number with the card issuing bank for getting alerts for ATM /WLA transactions. Any unauthorized card transaction in the account, if observed, should be immediately reported to the card issuing bank.
• Beware of any extra devices attached to the ATMs/WLAs. These may be put to capture customer’s data fraudulently. If any such device is found, inform the security guard / bank/ white label ATM entity maintaining it immediately.
• Keep an eye on suspicious movements of people around ATMs/WLAs. Customer should beware of strangers trying to engaging him/her in conversation or offering assistance / help in operating the ATM.
• Remember that bank officials will never ask for card details or PIN over telephone / email. So, do not respond to any vishing / phishing mails from people indicating that they represent your bank.