Reserve Bank of India that is the regulatory body of all the commercial banks, financial institutes, and Financial Firms in India has now released new guidelines for Valid ATM Transaction. Well, all the previous guidelines aren’t affected, RBI actually improves the existing one. These Guidelines basically explain to us what is now a Valid Transaction in any ATM in India.
Till now, Transactions that are failed due to technical reasons, non-availability of cash, Invalid Pin are counted towards our monthly quota of Transactions. However, in a circular released on August 14, RBI removes this rule. RBI asks all the Commercial Banks, Regional Rural Banks, Urban Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks, Small Finance Banks, Payment Banks, and White Label ATM Operators to categorize such transactions under free transactions. That means banks now not able to take any fee for such transactions.
Well, these new guidelines seriously give relieve to the ATM users as the number of free monthly transactions is limited. Valid from November 1, 2014, a bank must offer you a minimum of five free transactions (that includes both the financial as well as a non-financial transaction) if you have a saving account in the same bank. Well, as you can see, financial and non-financial transactions are both counts towards your free monthly transaction count. RBI new guideline also removes the barrier.
RBI says, non-cash withdrawal transactions like balance inquiry, mini-statement generation, checkbook request, etc. now not count toward your free monthly transaction count.
According to RBI,
- A Bank must give you a minimum of five free cash transactions in a month at any location if you have a saving bank account in the same bank.
- At Metro Locations, one can transact (cash) free for three times in a month from other banks ATM.
- At Non-Metro Locations, one can transact free for five times in a month at other banks ATM.
Well, that’s it. I think I have cleared, What is now counted towards valid ATM transaction? However, if you have any doubt, don’t forget to ping us below in the comment section.