Banks told to display cash non-availability at ATMs before transaction

02 Aug 2013

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The Reserve Bank of India yesterday asked banks to display a message that would allow customers to know the non-availability of cash in an ATM before they started a transaction.

The RBI said in a notification, "The message regarding non-availability of cash in ATMs should be displayed before the transaction is initiated by the customer. Banks may exercise option to display such notices either on screen or in some other way."

Banks have also been told to display the ATM ID within the premises which customers could quote while making complaints or suggestions.

According to the RBI, despite a number of previous instructions to banks to enhance customer service and handling of complaints, certain operational issues continued to persist, giving rise to customer complaints or suggestions on the matter.

RBI has also asked banks to ensure the availability of forms within ATM premises to enable customers to lodge ATM-related complaints.

In addition it has asked them to display sufficient toll-free numbers for lodging complaints or reporting and blocking lost cards to avoid delays and enable the banks to attend to these on a priority basis.

"Local helpline numbers (city-wise / centre wise) should also be increased and should be prominently displayed in the ATM premises / banks' web-site," the circular says.

RBI has also asked banks to display prominently the names and phone numbers of officials handling complaints in order to avoid delays in the lodging of complaints.

To enhanced the security of ATM transactions, in addition to requiring the usage of Pin numbers for each transaction, RBI has also asked banks to enable "time-out sessions for all screens or stages of a transaction" as an additional safety measure, to prevent fraudulent withdrawal at ATMs, in view of the time needed for such functions in the normal course, it added.

The notification sent to banks, advises them on the need for creating awareness about electronic banking products in order to prevent frauds and also to make customers aware of their rights and responsibilities.

"In view of changes taking place in this field, banks, in collaboration with Indian Banks' Association, may run advertisement campaign in both, print and electronic media at regular intervals. "

The RBI has further asked for registration of mobile numbers or email IDs of customers for sending alerts and these details would need to be periodically updated with KYC details.

"In view of changes taking place in this field, banks, in collaboration with Indian Banks' Association, may run advertisement campaigns in both print and electronic media at regular intervals," it further said.

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