Skip to main content
S2517ABanking & Investments

Financial Institutions - Community Obligations and Banking Offenses

This bill requires non-bank ATMs in Rhode Island to display a user's free account balance before a cash withdrawal.

Introduced37 Yea0 Nay0 Not voting
Population
Affected
65
Email Legislator
Introduced Feb 13, 2026Committee Senate Commerce

Plain-English Summary

This bill requires most automated teller machines (ATMs) in Rhode Island to show consumers their available account balance for free before they withdraw cash. The balance must be displayed clearly on the screen before the user is asked how much money they want, and the user must be given the option to cancel the transaction without being charged. It also prevents ATM operators from charging fees for checking the balance, for declined transactions, or when no money is dispensed. ATMs owned by financial institutions subject to the federal Gramm-Leach-Bliley Act are exempt.

For younger readers

This bill makes a rule for cash machines, also called ATMs. Before you take money out, the machine must tell you exactly how much money you have in your bank account for free. It has to show this on the screen before you type in how much money you want. If you decide not to take money out, or if the machine does not give you money, the machine is not allowed to charge you a fee. Machines owned by most big banks do not have to follow this new rule, but other cash machines do.

Who & Where It Applies

Impacted groups
ATM usersIndependent ATM operatorsConvenience store ownersThe Department of Business Regulation
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
None
Estimated revenue
Amount unknown

Bill Analysis

Both viewpoints
For Progressives
  • Protects low-income consumers from predatory overdraft fees by ensuring they know their exact account balance before withdrawing cash.
  • Eliminates unfair fees for declined transactions or situations where the ATM fails to dispense money, preventing unjust financial penalties on consumers.
  • Promotes financial transparency and consumer rights by mandating clear, upfront disclosures at independent ATMs where surprise fees are most common.
  • Contains a massive loophole exempting ATMs owned by financial institutions subject to the Gramm-Leach-Bliley Act, severely limiting the bill's consumer protection reach.
  • Fails to address or cap the exorbitant withdrawal fees often charged by non-bank ATMs, missing an opportunity to further protect disadvantaged communities.
  • Mandating the display of account balances on public ATM screens could expose vulnerable individuals to privacy risks and potential theft in high-traffic areas.
For Conservatives
  • Protects traditional banks from redundant state regulations by exempting institutions already covered by the federal Gramm-Leach-Bliley Act.
  • Encourages personal financial responsibility by ensuring consumers are fully aware of their available funds before making a withdrawal.
  • Assigns enforcement to the existing Department of Business Regulation, establishing a predictable regulatory framework without creating a new government agency.
  • Imposes a burdensome technological mandate on independent small business ATM operators, potentially requiring expensive software or hardware upgrades.
  • Infringes on the free market by prohibiting private independent ATM operators from charging fees for declined transactions or balance inquiries.
  • Subjects private businesses to administrative fines and corrective orders for minor display infractions, increasing government interference in commerce.

Votes

Loading votes...

Full Bill Text

2 versions
Changes to existing Rhode Island law · 20 additions

SECTION 1. Chapter 19-9 of the General Laws entitled "Community Obligations and Banking Offenses" is hereby amended by adding thereto the following section: 19-9-21.2. Automated teller machine balance disclosure prior to withdrawal.

(a) Prior to completing any cash withdrawal transaction, every automated teller machine located within the State of Rhode Island except as provided in subsection (d) of this section, shall provide the consumer with a free, real-time account balance display or balance inquiry option indicating the consumer’s available balance for the account being accessed.

(b) The balance disclosure required pursuant to subsection (a) of this section shall:

(1) Be presented clearly and prominently on the automated teller machine screen;

(2) Be displayed before the consumer is prompted to enter a withdrawal amount; and

(3) Provide the consumer with the option to cancel the transaction without charge.

(c) No bank, credit union, or automated teller machine operator shall impose a fee or charge of any kind for a transaction where no money is dispensed or for the balance disclosure or balance inquiry required by this section or for any transaction that has been declined.

(d) This section shall apply to all automated teller machines, including those owned or operated by financial institutions and non-bank operators, that permit cash withdrawals by consumers in this state except any automated teller machine owned, operated, leased, branded, or made available by or on behalf of a financial institution subject to the federal Gramm-Leach-Bliley Act, 15 U.S.C. § 6801 et seq.

(e) Enforcement of this section shall be by the department of business regulation. A violation of this section shall constitute an unfair practice subject to administrative enforcement, including fines and corrective orders, as determined by the director.

SECTION 2. This act shall take effect on January 1, 2027.