An ATM is a computerised machine that provides customers of banks the facility of accessing their accounts for dispensing cash and to carry out other financial & non-financial transactions without the need to visit the bank branch.

ATMs set up, owned, and operated by non-banks are called WLAs. These non-bank ATM operators are authorised under the Payment & Settlement Systems Act, 2007 by the Reserve Bank of India (RBI).

For a customer, using a WLA is just like using an ATM of any bank.

The rationale for allowing non-bank entities to set up WLAs has been to increase the geographical spread of ATMs for increased/enhanced customer service, especially in semi-urban / rural areas.

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

• Account Information 
• Cash Deposit 
• Regular Bill Payment 
• Mini / Short Statement Generation 
• PIN Change 
• Request for Cheque Book 

ATM / ATM cum debit cards, credit cards, and prepaid cards, as permitted by the issuer, can be used at ATMs/WLAs for various transactions.

For transacting at an ATM / WLA, the customer should traditionally have a valid card and Personal Identification Number (PIN). RBI has also allowed card-less withdrawals at ATMs.

The 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 after the first use. Customers should not disclose their PIN to anybody, including bank officials. Customers should change their PIN at regular intervals.

Yes, the cards issued by banks in India can be used at any ATM / WLA in the country.

A transaction carried out at an ATM of the card issuing bank is called an On-Us transaction. A transaction carried out at any other ATM is called an Off-Us transaction. For instance, if a card issued by bank A is used at an ATM of bank A, then it is an On-Us transaction; if the card is used at a WLA or at an ATM of any other bank, the transaction is Off-Us.

Yes, a bank must offer to its savings bank account holders a minimum number of free transactions at ATMs as under: 

• Transactions at a bank’s own ATM (On-Us transactions) at any location: Banks should offer their savings bank account holders a minimum of five free financial transactions in a month, irrespective of the location of ATMs. Any number of non-cash withdrawal transactions will be provided free. 
• Transactions at any other banks’ ATM (Off-Us transactions) at Metro locations: In the case of ATMs located in six metro locations, viz. Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and New Delhi, banks shall offer their savings bank account holders a minimum of three free transactions (including financial and non-financial transactions) in a month. 
• Transactions at any other banks’ ATM (Off-Us transactions) at non-Metro locations: At any location, other than the six metro locations as above, banks must offer its savings bank account holders a minimum of five free transactions (including financial and non-financial transactions) at other bank ATMs in a month. 

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

The above does not apply to BSBDA as the number of withdrawals from BSBDA is subject to the conditions associated with such accounts.

The prescription of several free transactions is inclusive of financial and non-financial transactions at other bank ATMs. However, non-cash withdrawal transactions (such as balance enquiry, cheque book requests, payment of taxes, funds transfer, etc.), on own bank ATMs are not to be part of the number of free ATM transactions. Similarly, transactions that 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 thereon shall be levied. 

ATM-installing banks have been advised to indicate clearly at each ATM location that the ATM is situated in a ‘metro’ or a ‘non-metro’ location using appropriate means (message displayed on the ATM/sticker/poster, etc.) to enable the customer to identify the status of the ATM in relation to the availability of a few free transactions.

Yes, customers can be charged for transactions at ATMs over and above the mandated number of free transactions (as indicated in answer to Q. 11 above). Presently, these charges cannot exceed a maximum of Rs. 21/- per transaction (plus applicable taxes, if any) by his / her bank.

The service charges for the following types of cash withdrawal transactions are to be determined by the banks themselves: 

 (a) cash withdrawal with the use of credit cards. 

(b) cash withdrawal in an ATM located abroad. 

Though banks are supposed to reverse such transactions on their own, it is always a good practice to lodge a complaint with the card issuing bank or ATM owner bank at the earliest.

Banks/WLA Operators are required to display the name(s) and the contact number(s) of concerned officer(s)/toll-free number(s)/help desk number(s) in the ATM premises.

In the case of a failed ATM transaction, the banks are required to re-credit the customer’s account within a maximum of T+5 calendar days (where ‘T’ is the day of the transaction).

Yes, the card issuing bank must pay compensation of Rs. 100/- per day for delay in re-crediting the customer’s amount beyond 5 calendar days from the date of the failed ATM transaction. The compensation must be credited to the customer’s account without any claim being made by the customer.

A card upon expiry of its validity or closure of the underlying account, should be cut into four pieces through the magnetic strip/chip before disposing of it.

Customers should observe the following Do’s and Don’ts to keep their transactions at ATMs/WLAs safe and secure: 

• · Customer should conduct the ATM/WLA transaction in complete privacy. 
• · Only one cardholder should enter and access the ATM/WLA kiosk at a time. 
• · The cardholder should not lend his/her card to anyone. 
• · The cardholder should not write the PIN on the card. 
• · The cardholder should not share the PIN with anyone. 
• · The cardholder should not let anyone see the PIN while it is being entered at the ATM. 
• · The cardholder should never use a PIN that could be easily guessed. 
• · The cardholder should never leave the card in the ATM/WLA. 
• The cardholder should register his/her mobile number with the card issuing bank to get alerts for transactions at ATMs / WLAs. Any unauthorized card transaction in the account, if observed, should be immediately reported to the card issuing bank. 
• The cardholder should be vigilant and check if any extra device/s is/are attached to the ATMs/WLAs. The device/s may be put in place to capture customer data fraudulently; if found, the security guard/bank / WLA entity should be informed immediately. 
• The cardholder should keep an eye on suspicious movement/s of people around the ATMs/WLAs. He / She should be careful of strangers trying to engage him/her in conversation or offering assistance/help in operating the ATM. 
• The cardholder should remember that bank officials never ask for card details or PIN over the telephone/email. So, he/she should not respond to any such communication from anyone indicating that they represent his/her bank. 

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.

The Magnetic Stripe card stores card data on the magnetic stripe present on the card, while the data in an EMV Chip & PIN card is stored in a chip.

Banks have been instructed to convert all existing Magnetic Stripe cards to EMV Chip & PIN cards before December 31, 2018. If the cardholder has not got his / her magnetic stripe card replaced by an EMV Chip & PIN card, he/she should immediately approach his / her bank branch to get the replacement.