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Third party ATM transaction gets harder
By siliconindia
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Friday, 03 April 2009, 19:35 IST |
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Mumbai: The decision of free transaction from any automated teller machines (ATMs) resulted in a rush of many consumers to withdraw cash. The use of third party ATMs, however, proved inconvenient in many parts of the country, with the machines turning down the withdrawal requests saying 'transaction declined'.
The problems were the result of overloads on the national financial switch (NFS), which enables inter-bank transactions, reports Business Standard. Banks like State Bank of India (SBI) and ICICI Bank have confirmed that the third party ATM use is proving difficult. "The traffic has increased manifold. NFS is yet to put in place requisite systems to handle this huge volume," said an SBI executive. For inter-bank transactions the routes are different and there may be a problem with satellite connectivity.
According to bankers, Reserve Bank of India (RBI) has been notified about the withdrawal problem and it has ensured the financial firms that the system will be upgraded, which would take a couple of days. However, RBI denies the receipt of any such complaint and also maintained that the problem was not due to any pricing-related issues.
The consumers who had used their own bank's ATM did not face any such issue as a bank's home ATM network are processed through a different switching system.