Cap on withdrawals from ATMs policy decision: RBI to Delhi HC

By: PTI | New Delhi | Published:November 6, 2016 11:00 am
RBI, Reserve Bank of India, Delhi HC, Delhi High Court, ATM withdrawal cap, ATM withdrawal limit, ATM withdrawal, RBI Delhi HC, indian express, business news, india news Reserve Bank of India.

The Reserve Bank of India has told the Delhi High Court that the cap on the number of withdrawals from ATMs by banking customers without being charged is a policy decision taken in public interest. A bench of Chief Justice G Rohini and Justice Sangita Dhingra Sehgal was also informed by RBI that the ATM facility was made available with a view to reduce “cash usage and increase electronic transactions in the country”.

Watch What Else Is Making News

RBI was responding to a public interest litigation (PIL) filed by advocate Swati Aggarwal, seeking directions to allow banking customers to make an unlimited number of transactions free of any charge on their own bank ATMs.

India’s central banking institution, which controls the monetary policy of the rupee, however, opposed the PIL, saying it is “not maintainable and is liable to be dismissed, as RBI has not violated any laws of the land”.

“The PIL is not meant to be a weapon to challenge the financial or economic decisions which are taken by the RBI in exercise of their administrative/ statutory powers and in the public interest…,” RBI’s counsel said.

On this, the bench has asked the RBI to file an affidavit with regard to its contention made before it by next date of hearing, December 5.

The RBI’s oral submissions were made after the high court on last date of hearing had questioned its decision to put a cap on withdrawals by banking customers using their ATM cards, saying account holders were being “unnecessarily taxed”.

As per RBI’s new guidelines, bank customers in six metros — Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bengaluru –are allowed to withdraw money free of charge only five times a month and every transaction beyond this limit will be charged Rs 20 per use.

For all the latest India News, download Indian Express App now

  1. R
    Rakesh Saran
    Nov 7, 2016 at 9:29 am
    So haring for a senior citizen ! The bank account is open to hackers , and not much money can be kept at home at a time , for fear of being murdered ! There should be provision for unlimited withdrawal of small amounts with a cap on per day transactions . To keep accounts safe from hackers a senior citizen will have to open two bank accounts . One bank account to keep bulk money , from which cash will be withdrawn and deposited in the other bank account to make cashless transactions . The main bank account will be delinked from the prying eyes of a hacker . lt;br/gt;This rigmarole is so ic but this is exactly what you expect of the lazy bureaucracy !/?