Lok Sabha Question No. 4091 (UNSTARRED), answered on 2019-01-04
Subject: Upgradation of ATMs
Ministry: FINANCE
Asked by: SUSHIL KUMAR SINGH, PRAHLAD SINGH PATEL

## GOVERNMENT OF INDIA

## MINISTRY OF FINANCE

## DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION No. 4091

TO BE ANSWERED ON FRIDAY, JANUARY 04, 2019/ PAUSHA 14, 1940 (SAKA)

## Upgradation of ATMs

## 4091 .   SHRI SUSHIL KUMAR SINGH: SHRI PRAHLAD SINGH PATEL:

Will the Minister of FINANCE be pleased to state:

- (a) whether the new guidelines issued by the RBI on Automated Teller Machines (ATMs) hardware and software upgradation has any impact on the ATM industry, if so, the details thereof and if not, the reasons therefor;
- (b) whether  such  changes  will  result  in  increase  in  the  service  charges  collected  from  the users, if so, the details thereof;
- (c) whether the Government is aware that due to defective ATM many consumers are often unable to withdraw their deposited money from ATMs and they are facing difficulties, if so, the details thereof;
- (d) whether there is any shortage of technical employees to repair ATMs and if so, the details thereof; and
- (e) the  measures  taken  by  the  Government  to  ensure  smooth  functioning  of  ATMs  and  to protect the interests of consumers/depositors?

## Answer

## The Minister of State in the Ministry of Finance (SHRI SHIV PRATAP SHUKLA)

(a) to (e)   As apprised by the Public Sector Banks (PSBs), while they have initiated necessary steps to comply with the guidelines issued by Reserve Bank of India (RBI) on various control and risk mitigation measures,  they do not have any plan to shut down their ATMs.

PSBs have also informed that there is no proposal to increase the service charges from users for ATMs.

It  has  also  been  apprised  that  maintenance  and  updation  of  ATMs  is  continuous  process  with maintenance being looked after by the service provider/vendor. Whenever required, ATMs are repaired by them as per the Service Level Agreement (SLA).

With a view to protect the interest of the customers in case of unauthorized electronic banking transactions, Reserve Bank of India (RBI) vide  its  circular  dated 06.07.2017 on 'Customer

Protection  -  Limiting  Liability  of  Customers  in  Unauthorised  Banking  Transactions'  has stipulated as follows:

1. Customers' liability is limited to zero in case of deficiency on the part of the bank or third party  breach  where  deficiency  lies  neither  with  the  bank  nor  with  the  customer  but elsewhere  in  the  system,   provided  they  notify  the  bank  within  three  working  days  of receiving the communication from the bank regarding the unauthorised transaction.
2. In  such  cases,  the  banks  are  to  credit  the  amount  involved  in  such  transaction  to  the customer's account within ten working days from the date of such notification.

As per Reserve Bank of India (RBI)'s circular on 'Control Measures for ATMs - Timeline for Compliance' dated 21.6.2018, banks are advised to initiate immediate action to implement the control measures for ATMs, including upgradation of software in a time bound manner and to closely monitor the compliance.

The Government has also instructed the banks to comply with the timelines prescribed by the RBI for upgradation of software for ATMs and to closely monitor the progress.

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