ATM Charges Current Affairs - 2020

Finance Minister on COVID-19: Tax Filings extended, ATM, bank charges waived off, Business Rules Eased and much more

On March 24, 2020, the Finance Minister Nirmala Sitaraman announced several key measures in the view of Corona Virus Pandemic. The minister also announced that the Economic Task Force is to announce Economic Relief Package to contain the spread of the disease.

Financial Measures

No charges on withdrawal of cash in bank ATMs. Also, the digital charges on trade transactions have been reduced. This is being done to ease burden on customers in need of urgent cash and also to avoid overcrowding in bank branches.

Tax Measures

The PAN card and Aadhaar card linking were extended to June 30. The Vivaad Se Vishwas Scheme that was launched by the Finance Minister during the Budget Session has been extended to June 30. The Compliances under Wealth Tax act, Income Tax Act, Black Money Act, Benami Transaction Act and Vivaad Se Vishwas have also been extended to June 30.

Other Measures

The GST returns, Sabka Vishwas scheme filing dates have also been extended to March 31.

Banks not to charge for failed transactions, balance enquiry: RBI

Every month banks provide certain number of free transactions at ATMs to their customers and exceeding which charges are imposed. Reserve Bank of India (RBI) has asked banks not to count failed transactions at ATMs due to technical reasons as part of ‘free ATM transactions’ permitted every month.

Circular issued by RBI

The central bank has issued a circular in this regard which comes after it came to RBI’s notice that transactions that have failed due to technical reasons or even non-availability of currency in ATMs are also included in number of free ATM transactions.

RBI clarified that transactions which fail on account of technical reasons such as non-availability of cash, hardware and software issues and any other reason which is attributable to bank, should not be counted as valid ATM transactions for customer and therefore, no charges shall be levied.

Besides these, if the ATM is used for non-cash withdrawal transactions such as balance enquiry, cheque book request, payment of taxes, funds transfer, etc. which constitute ‘on-us’ transactions (i.e. when a card is used at an ATM of same bank which has issued card) should also not be part of number of free ATM transactions facility given to a customer.