Automated Teller Machine (ATM)

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

Ans. 1. Automated Teller Machine is a computerised machine that provides the customers of banks the facility of accessing their accounts for dispensing cash and to carry out other financial transactions without the need of actually visiting a bank branch.
Q. 2. What type of cards can be used at an ATM?

Ans. 2. The ATM cards/debit cards, credit cards and prepaid cards(that permit cashwhdrawal) can be used at ATMs for various transactions.
Q. 3. What are the services/facilities available at ATMs?

Ans. 3. In addition to cash dispensing ATMs may have many services/facilities such as:

• Account information
• Cash Deposit
• Regular bills payment
• Purchase of Re-load Vouchers for Mobiles
• Mini/Short Statement
• Loan account enquiry etc.

The services offered may vary from bank to bank, or may depend on the capacity of the machine to provide such services.
Q.4. How can one transact at an ATM?

Ans. 4. For transacting at an ATM, the customer insert (swipe) their card in the ATM and enter their Personal Identification Number (PIN).
Q.5. Can these cards be used at any bank ATM in the country?

Ans. 5. Yes. The cards issued by banks in India should be enabled for use at any bank ATM within India.
Q.6. What is a Personal Identification Number (PIN)?

Ans 6. PIN is the numeric password for use at the ATM. The PIN is separately mailed/handed over to the customer by the bank while issuing the card. This PIN has to be reset to a new PIN by the customer. Most banks force the customers to change the PIN on the first use.
The PIN number should not be written the card, card holder etc as in such cases the card can be misused if card is lost/stolen.
Q. 7. What should one do if he forgets PIN or the card is sucked in by the ATM?

Ans. 7. The customer may contact the card issuing bank branch and apply for retrieval/issuance of a new card. This procedure is applicable even if the card is sucked in at another bank's ATM.
Q. 8. What should be done if the card is lost/stolen?

Ans. 8. The customer may contact the card issuing bank immediately on noticing the loss so as to enable the bank to block such cards.
Q. 9. Is there any minimum and maximum cash withdrawal limit per day?

Ans. 9. Yes, banks set limit for cash withdrawal by customers. The cash withdrawal limit for use at the ATM of the issuing bank is set by the bank during the issuance of the card. This limit is displayed at the respective ATM locations.
For cash withdrawals at other bank ATMs, banks have decided to maintain a limit of Rs 10,000/- per transaction. This information is displayed at the ATM location.
Q. 10. Do banks levy any service charge for use of other bank ATMs?

Ans.10. No charges are payable for using other banks' ATM for cash withdrawal and balance enquiry, as RBI has made it free under its "Free ATM access policy" since April 01, 2009. But banks can restrict the number of such free transactions to a maximum of five per month. For transactions beyond this minimum number of transaction, banks charge maximum of Rs 20/- per transaction.
Q. 11. What should be done in case during the cash withdrawal process, cash is not disbursed by the account gets debited for the amount?

Ans.11. The customer may lodge a complaint with the card issuing bank. This process is applicable even if the transaction was carried out at another banks ATM.
Q.12. How many days maximum would the bank require to re-credit the account for such wrong debits?

Ans.12. As per the RBI instructions, banks may re-credit such wrongly debited amounts within a maximum period of 12 working days.
Q.13. Are the customers eligible for compensation for delays beyond 12 working days?

Ans.13. Yes. Effective from July 17, 2009, banks shall have to pay customers Rs 100/- per day for delays beyond 12 working days. This shall have to be credited to the account of the customer without any claim being made by the customer.
Q.14. In case the compensation is not credited as mandated, what recourse does the customer have?

Ans. 14. For all such complaints customer may lodge a complaint with the local Banking Ombudsman if the bank does not respond.

What is Real Time Gross Settlement System(RTGS System)

Q1. What is RTGS System? Ans. The acronym 'RTGS' stands for Real Time Gross Settlement. RTGS system is a funds transfer mechanism where transfer of money takes place from one bank to another on a 'real time' and on 'gross' basis. This is the fastest possible money transfer system through the banking channel. Settlement in 'real time' means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. 'Gross settlement' means the transaction is settled on one to one basis without bunching with any other transaction. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable. Q2. How RTGS is different from Electronic Fund Transfer System (EFT) or National Electronics Funds Transfer System (NEFT)? Ans .EFT and NEFT are electronic fund transfer modes that operate on a deferred net settlement (DNS) basis which settles transactions in batches. In DNS, the settlement takes place at a particular point of time. All transactions are held up till that time. For example, NEFT settlement takes place 6 times a day during the week days (9.00 am, 11.00 am, 12.00 noon. 13.00 hours, 15.00 hours and 17.00 hours) and 3 times during Saturdays (9.00 am, 11.00 am and 12.00 noon). Any transaction initiated after a designated settlement time would have to wait till the next designated settlement time. Contrary to this, in RTGS, transactions are processed continuously throughout the RTGS business hours. Q3. Is there any minimum / maximum amount stipulation for RTGS transactions? Ans. The RTGS system is primarily for large value transactions. The minimum amount to be remitted through RTGS is Rs.1 lakh. There is no upper ceiling for RTGS transactions. No minimum or maximum stipulation has been fixed for EFT and NEFT transactions. Q4. What is the time taken for effecting funds transfer from one account to another under RTGS? Ans. Under normal circumstances the beneficiary branches are expected to receive the funds in real time as soon as funds are transferred by the remitting bank. The beneficiary bank has to credit the beneficiary's account within two hours of receiving the funds transfer message. Q5. Would the remitting customer receive an acknowledgement of money credited to the beneficiary's account? Ans The remitting bank receives a message from the Reserve Bank that money has been credited to the receiving bank. Based on this the remitting bank can advise the remitting customer that money has been delivered to the receiving bank. Q6. Would the remitting customer get back the money if it is not credited to the beneficiary's account? When? Ans. Yes. It is expected that the receiving bank will credit the account of the beneficiary instantly. If the money cannot be credited for any reason, the receiving bank would have to return the money to the remitting bank within 2 hours. Once the money is received back by the remitting bank, the original debit entry in the customer's account is reversed. Q7. Till what time RTGS service window is available? Ans. The RTGS service window for customer's transactions is available from 9.00 hours to 16.30 hours on week days and from 9.00 hours to 12.30 noon on Saturdays for settlement at the RBI end. However, the timings that the banks follow may vary depending on the customer timings of the bank branches. Q8. What about Processing Charges/Service Charges for RTGS transactions? Ans With a view to rationalize the service charges levied by banks for offering various electronic products, a broad framework has been mandated as under: a) Inward transactions – Free, no charge to be levied b) Outward transactions – Rs. 1 lakh to Rs. 5 lakh - not exceeding Rs. 25 per transaction. Rs. 5 lakh and above – not exceeding Rs. 50 per transaction. Q9. What is the essential information that the remitting customer would have to furnish to a bank for the remittance to be effected? Ans. The remitting customer has to furnish the following information to a bank for effecting a RTGS remittance: 1. Amount to be remitted 2. His account number which is to be debited 3. Name of the beneficiary bank 4. Name of the beneficiary customer 5. Account number of the beneficiary customer 6. Sender to receiver information, if any 7. The IFSC Number of the receiving branch Q10. How would one know the IFSC code of the receiving branch? Ans. The beneficiary customer can obtain the IFSC code from his branch. The IFSC code is also available in the cheque leaf. This code number and bank branch details can be communicated by the beneficiary to the remitting customer. Q11. Do all bank branches in India provide RTGS service? Ans. No, all the bank branches in India are not RTGS enabled. As on December 31, 2008 more than 52,000 bank branches are RTGS enabled. The list of such branches is available on RBI website www.rbi.org.in/Scripts/Bs_viewRTGS.aspx Q12. Is there any way that a remitting customer can track the remittance transaction? Ans It would depend on the arrangement between the remitting customer and the remitting bank. Some banks with internet banking facility provide this service. Once the funds are credited to the account of the beneficiary bank, the remitting customer gets a confirmation from his bank either by an e-mail or by a short message on the mobile. Q13. Whom do I can contact, in case of non-credit or delay in credit to the beneficiary account? Ans Contact your bank / branch. If the issue is not resolved satisfactorily, the Customer Service Department of RBI may be contacted at - The Chief General Manager, Reserve Bank of India, Customer Service Department, 1st Floor, Amar Building, Fort, Mumbai - 400001 or send and email. Q14. How much volume and value of transactions are routed through RTGS on a typical day? Ans On a typical day, RTGS handles about 60,000 transactions a day for an approximate value of Rs.2,700 billion. Q15. How can a remitting customer know whether the bank branch of the beneficiary accepts remittance through RTGS? Ans. For a funds transfer to go through RTGS, both the sending bank branch and the receiving bank branch would have to be RTGS enabled. The lists are readily available at all RTGS enabled branches. Besides, the information is available at RBI website (www.rbi.org.in/Scripts/Bs_viewRTGS.aspx). Considering that more than 52,000 branches at more than 10,000 cities/ towns and taluka places are covered under the RTGS system, getting this information would not be difficult.

NEFT System

Q.1. What is NEFT System?
Ans : National Electronic Funds Transfer (NEFT) system is a nation wide funds transfer system to facilitate transfer of funds from any bank branch to any other bank branch.
Q. 2. Are all bank branches in the system part of the funds transfer network?
Ans : No. As on December 31, 52427 branches of 89 banks are participating. Steps are being taken to widen the coverage both in terms of banks and branches.
Q.3. Whether the system is centre specific or has any geographical restriction?
Ans : No, there is no restriction of centres or of any geographical area inside the country. The system uses the concept of centralised accounting system and the bank's account, that are sending or receiving the funds transfer instructions, gets operated at one centre, viz, Mumbai only. The individual branches participating in NEFT could be located anywhere across the country, as detailed in the list provided on our website.
Q.4. What is the funds availability schedule for the beneficiary?
Ans : The beneficiary gets the credit on the same Day or the next Day depending on the time of settlement.
Q.5. How does the NEFT system operate?
Step-1: The remitter fills in the NEFT Application form giving the particulars of the beneficiary (bank-branch, beneficiary's name, account type and account number) and authorises the branch to remit the specified amount to the beneficiary by raising a debit to the remitter's account. (This can also be done by using net banking services offered by some of the banks.)

Step-2: The remitting branch prepares a Structured Financial Messaging Solution (SFMS) message and sends it to its Service Centre for NEFT.

Step-3: The Service Centre forwards the same to the local RBI (National Clearing Cell, Mumbai) to be included for the next available settlement. Presently, NEFT is settled in six batches at 0900, 1100, 1200, 1300, 1500 and 1700 hours on weekdays and 0900, 1100 and 1200 hours on Saturdays

Step-4: The RBI at the clearing centre sorts the transactions bank-wise and prepares accounting entries of net debit or credit for passing on to the banks participating in the system. Thereafter, bank-wise remittance messages are transmitted to banks.

Step-5: The receiving banks process the remittance messages received from RBI and effect the credit to the beneficiaries' accounts.
Q.6. How is this NEFT System an improvement over the existing RBI-EFT System?
Ans : The RBI-EFT system is confined to the 15 centres where RBI is providing the facility, where as there is no such restriction in NEFT as it is based on the centralised concept. The detailed list of branches of various banks participating in NEFT system is available on our website. The system also uses the state-of-the-art technology for the communication, security etc, and thereby offers better customer service.
Q.7. How is it different from RTGS and EFT?
Ans : NEFT is an electronic payment system to transfer funds from any part of country to any other part of the country and works on Net settlement, unlike RTGS that works on gross settlement and EFT which is restricted to the fifteen centers only where RBI offices are located.
Q.8. Any limit on the amount of individual transaction?
Ans : There is no value limit for individual transactions.
Q.9. What about Processing Charges/Service Charges
Ans : While RBI has waived the processing charges till March 31, 2009. With a view to rationalize the service charges levied by banks for offering various electronic products, a broad framework has been mandated as under: –
a) Inward transactions – Free, no charge to be levied
b) Outward transactions –
Upto Rs. 1 lakh - not exceeding Rs.5 per transaction.
Rs. 1 lakh and above – not exceeding Rs. 25 per transaction.
Q.10. How will I know which are the branches participating in the NEFT?
Ans : RBI publishes the list of bank branches participating in the NEFT on its website i.e. https://www.rbi.org.in/scripts/neft.aspx
Q.11. What is IFS Code (IFSC)? How it is different from MICR code?
Ans : Indian Financial System Code (IFSC) is an alpha numeric code designed to uniquely identify the bank-branches in India. This is 11 digit code with first 4 characters representing the banks code, the next character reserved as control character (Presently 0 appears in the fifth position) and remaining 6 characters to identify the branch. The MICR code has 9 digits to identify the bank-branch.
Q.12. How I will know, what is the IFS Code of my bank-branch?
Ans : RBI had since advised all the banks to print IFSC on cheques leaves issued to their customers. You may also contact your bank-branch and get the IFS Code of that branch.
Q.13. Whom I can contact, in case of non-credit or delay in credit to the beneficiary account?
Ans : Contact your bank / branch. If the issue is not resolved satisfactorily, the Customer Service Department of RBI may be contacted on nefthelpdeskncc@rbi.org.in or write to -
The General Manager,
Reserve Bank of India,
National Clearing Centre
First Floor, Free Press House
Nariman Point
Mumbai – 400 027
Q.14. Is it necessary to have a bank account to originate the NEFT transaction?
Ans : Yes, NEFT is an account to account funds transfer system.
Q.15. Is it necessary that the beneficiary should have an account at the destination bank-branch?
Ans : Yes, NEFT is an account to account funds transfer system.
Q.16. Can I receive foreign remittances through NEFT?
Ans : This system can be used only for remitting Indian Rupee among the participating banks within the country.
Q.17. Can I send remittances abroad using the NEFT?
Ans : No
Q.18. Can I originate a transaction to receive funds from another account?
Ans : No
Q.19. Can I send/receive funds from/to NRI accounts?
Ans : Yes, subject to applicability of provisions of FEMA
Q.20. Would the customer receive an acknowledgement of money credited to the beneficiary?
Ans : No, however electronic acknowledgement is generated for the customer that his money is received by the beneficiary at the sender branch.
Q.21. Would the remitting customer get back the money if it is not credited to the beneficiary’s account?
Ans : Yes, the remitting customer gets back the money if it is not credited to the beneficiary account.
Q.22. Till what time NEFT service window is available?
Ans : There are six settlements at 0900, 1100, 1200, 1300, 1500 and 1700 hours on weekdays and 0900, 1100 and 1200 hours on Saturdays.
Q.23. What is the essential information that the remitting customer would have to furnish for the remittance to be effected?
Ans : The essential information that the remitting customer has to furnish is:

• Beneficiary details such as beneficiary name and account number
• Name and IFSC of the beneficiary bank branch.

Q.24. Is there any way a remitting customer can track the remittance transaction?
Ans : The remitting customer can track the remitting transaction through the remitting branch only, as the remitting branch is informed about the status of the remitted transactions.