RBI cuts number of free
cross-bank ATM transactions to 3 per month
i. Frequent withdrawal of money from ATMs will become expensive from November,
with the RBI imposing a limit of 3 transactions per month from ATMs of other
banks and 5 from the same bank in six metropolitan cities.
ii. A customer will be required to pay a fee of up to Rs 20 for using
Automated Teller Machines (ATMs) beyond the permitted numbers of transactions in Delhi, Mumbai, Chennai,
Bangalore, Kolkata and Hyderabad.
iii. The new guidelines, which were issued in pursuance of a
representation made to the central bank by Indian Banks' Association, will come
into effect from November 1, 2014.
iv. "The number of mandatory free ATM transactions for savings
bank account customers at other banks ATMs is reduced from the present 5 to 3
transactions per month (inclusive of both financial and non-financial
transactions) for transactions done at the ATMs located in 6 metro
centres," RBI said in a notification.
v. With regard to own bank ATMs, RBI said that banks will have to
permit at least 5 free transactions per month (both financial and
non-financial).
vi. Banks have been allowed to charge a maximum fee of Rs 20 per transaction beyond the stipulated ceilings.
vii. The Reserve Bank of India (RBI) also made it clear that the said
reduction will not apply to small/no frills/basic savings bank deposit account
holders.
Note: i. Also, it will not be applicable for account holders other than the
six metro cities.
ii. The Reserve Bank said the cap on the number of free ATM
transactions have been imposed in view of the growing cost of ATM deployment
and maintenance incurred by banks and also in view of rising interchange outgo
due to free usages.
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