Card transactions

THE CHANGE
Withdrawal of up to Rs 10,000 from any bank's ATM for free, five times a month. This facility was launched on 15 October 2009.

THE INTENT
The directive has been one among many issued by the RBI on card and ATM usage and is aimed at ensuring customer ease and satisfaction. In July 2010, the central bank announced that the banks which don't adhere to its guidelines would face penal action.

THE IMPACT
Nowhere have the reforms been as prolific as in the banking sector. So, while the banks keep luring customers with innovative products-mobile banking, instant cash deposits, etc- the RBI has been taking steps to spruce up the sector.

Both have one goal: to ensure customer convenience and satisfaction. Banks have been aggressively expanding their ATM networks and the RBI put this to good use when it announced that customers could withdraw up to Rs 10,000 from the ATM of any bank for free.

"I believe that retailers should operate as banks. Allowing people to swipe debit cards to withdraw money from retail stores is the first step towards this." Kishore Biyani CEO, Future Group

However, it limited the number of such transactions to five a month, after which a fee of Rs 20 will be charged per withdrawal. In fact, ATMs have evolved from being just a cash dispenser to a multiutility centre. You can now deposit cash in a machine and collect your transaction receipt.

Within a few hours, you get a mobile alert informing you that the money has been credited to your account. But what if you're in dire need of money and cannot spot an ATM? The RBI has stepped in to help you here too. Since July 2009, it has allowed cash withdrawals of up to Rs 1,000 by swiping the debit card at shops. There is a 2% charge for this, but it's worth the convenience.

Some banks have announced that the charges will be Rs 10-15. To further ease fund transfers, the RBI plans to extend the timing of the National Electronic funds Transfer (NEFT) system. From the current 9 a.m. to 5 p.m. on weekdays and half-a-day on Saturdays, the retail payment system will soon begin operating on a 24x7 basis.

Credit Report You can now gain access to your credit report from banks or credit bureaus by paying less than Rs 150. So, if you have taken a loan from a bank, you can ask it for the report.

The RBI isn't limiting its role to that of a guide, but is also acting as the 'big brother' when it comes to secure transactions. On August 2009, it launched a secondary safety net for online card usage, called Verified by Visa and MasterCard SecureCode.

Under these services, customers have to fill in a unique card PIN while making online transactions. This password is not linked to your account or card, so even if someone knows your card details and CVV number, they will not be able to use your credit card, thereby protecting you from fraud or identity theft. Banking has never been as easy or as secure.