Regulatory Alerts2024-08-09 | FIL-53-2024Classification of Interactive Teller Machines as Domestic Branches or Remote Service Units
The FDIC issued supervisory guidance clarifying that state nonmember banks may classify Interactive Teller Machines (ITMs) as remote service units rather than domestic branches, eliminating the need for a formal branch application. To qualify, an ITM must operate as an automated facility equipped for remote live-teller interactions while allowing customers to independently perform core banking functions and control session initiation. Banks may also extend unstaffed ATM-style services to non-customers without triggering branch requirements, though ITMs exceeding these operational parameters will remain subject to FDIC approval.
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