RBI limits number of free cross-bank ATM transactions to 3 per month

RBI limits number of free cross-bank ATM transactions to 3 per month
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.

"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.

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.

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.

Also, it will not be applicable for account holders other than the six metro cities.

India has a total of 1.6 lakh ATMs across the country as of March 2014.

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.

Further, RBI said that banks should clearly indicate the location of an ATM as metro or non-metro to enable customers identify status of the ATM in relation to availability of number of free transactions.

"Banks are advised to put in place suitable mechanism for cautioning/advising/alerting the customers about the number of free transactions already utilised during the month by the customer and the possibility that charges may be levied as per the banks policy on charges," the RBI said.

Read more about: rbi, atm
Story first published: Monday, August 18, 2014, 12:50 [IST]
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