The Irish Financial Services Regulatory Authority (IFSRA) has said that Bank of Ireland customers should recognise their own responsibilities if they opt to take a €700 overdraft through the bank's ATM machines.

The bank informed IFSRA of the new service and noted its comments in relation to the prudent lending policy that will apply.

Customers who can apply for an immediate overdraft in less than one minute at a cash machine will already have been pre-approved for a loan by the bank.

"The bank has stated that the overdraft facility will be offered to pre-approved customers with good reason," an IFSRA spokesman said yesterday. The regulator said the bank was simply delivering its products in a new way. Customers can also apply for overdrafts through the internet, he said.

The Consumers Association of Ireland, however, intends to express concerns to IFSRA on the ground that the ATM overdraft could result in a sharp rise in the number of people getting into debt.

Customers who are eligible for this overdraft can instantly have up to €700 transferred into their current accounts. The bank will charge a rate of interest of 13.5 per cent, as well as the normal ATM transaction fee.