What are Financial and Non-financial ATM Transactions?

We all have an ATM debit card with us and we are very familiar with using it. But what we usually skip or don’t know is. There are two types of ATM transactions. And they are Financial and Non-financial transactions.

So I thought about writing this guide which explains the exact meaning of these two. And also explain what are the services that come under financial and non-financial.

Financial and Non-financial ATM Transactions

What is a Financial ATM Transaction?

Whenever the customer deposits or collects the cash from the ATM machine it is called a financial ATM transaction.

If you are wondering how can someone deposits cash in an ATM machine. Then let me tell you that the word machine also includes the cash deposit and cash recycler machines.

For example, Mr. XYZ goes to any machine and withdraws Rs. 10,000 from his bank account.

List of Financial Services of ATM Machines:

  • Cash dispensing.
  • And cash deposit.

What is a Non-financial ATM Transaction?

Whenever the customer uses the ATM machine to perform tasks like the change of PIN, balance enquiry, mini statement, etc. that does not involve cash in it. Then this kind of transaction is termed a non-financial ATM transaction.

There are a lot of things and services that the banks in India offer to the customers. So from one angle, I can say that our ATM machines offer us non-financial services more than those of financial.

List of Non-financial Services of ATM Machines:

Revised Charges for the Transactions

In a recent notification of RBI, the central bank allowed the banks to charge more from the customers for the ATM machine usage.

I am referring to the notification dated June 10, 2021. These charges are applicable from August 1, 2021.

Financial Transaction Up to Rs. 17 per transaction
Non-financial Transaction Up to Rs. 6 per transaction

Conclusion

This is all you should know about these two types of ATM transactions in India. For more accurate information you can call the customer care of your bank.