Using ATMs to withdraw money
or for other purposes like balance enquiry beyond five times in a month will
attract a levy of Rs 20 per transaction from November 1.
As
per the Reserve Bank's new guidelines that comes into force from tomorrow, bank
customers in six metros-- Delhi, Mumbai, Chennai, Kolkata, Hyderabad and
Bangalore - are allowed to withdraw money and/or carry out non-financial
transactions like mini-statements at ATMs of banks, where they hold
saving/current accounts, free of charge only five times a month.
Every
transaction beyond this threshold will be charged Rs 20 per use.
Besides,
the number of free transactions at ATMs (Automated Teller Machines) of non-home
banks has been cut to three times a month from five times.
"Taking
into account the high density of ATMs, bank branches and alternate modes of
payment available to customers, 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)," RBI had said in a notification issued in
August this year.
The
RBI, however, clarified that nothing precludes a bank from offering more than
three free transactions at other bank ATMs to its account holders if it so
desires.
The
cap in the number of free ATM transactions will not apply on small/no-frills or
basic savings bank deposit account holders who will continue to enjoy five free
transactions.
At
places other than the six metro centres, the facility of five free transactions
for savings bank account customers will remain unchanged upon using other bank
ATMs.
India
has a total of 1.6 lakh bank ATMs across the country as of March 2014.
The
new guidelines were issued in pursuance of a representation made to the RBI by
Indian Banks' Association on the back of growing cost of ATM deployment and
maintenance incurred by banks as well as rising interchange outgo due
to free transactions.
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