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
- Purchase of Re-load Vouchers for Mobiles
- Mini/Short Statement
- PIN change
- Request for Cheque Book
- Loan Account Enquiry etc.
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. Is the customer
charged for ATM transactions?
Ans.10. With effect from
November 01, 2014, Savings bank account holders can do a minimum of three
transactions (including both financial and non-financial transactions) free of
charge in a month at other bank ATMs in case of ATMs located in six metro
locations, viz. Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad.
At other locations, the savings bank account holders can transact a minimum of
five transactions (including both financial and non-financial transactions)
free of charge in a month at other bank ATMs. Similarly, Basic Savings Bank
Deposit Account holders will continue to get five free transactions (including
both financial and non-financial transactions) in a month at other bank’s ATM
at all locations including the above six metro locations, subject to other
conditions associated with such accounts.
Further, savings bank account holders can
transact a minimum of five transactions (including both financial and
non-financial transactions) free of charge in a month at own bank ATMs
irrespective of location of ATMs.
Banks on their own can decide to offer more
number of transactions free of cost to their customers. In case of charges to
be levied on customers, the customer can be charged a maximum of Rs. 20/- per
transaction (plus service tax, if any) by his/her bank.
Q.11. What should be done
if card is lost / stolen?
Ans 11. 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. 12. From where the
customer can get the contact numbers for lodging a complaint?
Ans 12. Banks are required to
display the name and the contact numbers of concerned officers/toll free number/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.13. 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 13. 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. 14. 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. 13?
Ans 14. 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. 15. Are the customers
eligible for compensation for delays beyond 7 working days?
Ans 15. 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 16. 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 satisfaction?
Ans 16. The customer can take
recourse to the Banking Ombudsman, if the grievance is not redressed by the
his/her card issuing bank.
Q. 17. What is the
Grievance Redressal Mechanism available to users of WLAs in case of
failed/disputed WLA transactions?
Ans 17. 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. 18. What should be done
to the ATM card when the card is expired or the account is closed?
Ans 18. 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.19. How shall the
customer keep his/her ATM/WLA transaction secure?
Ans 19. 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.
- SOURCE: www.taxguru.com
