Monday, Oct 20, 2014

Free ATM usage at other banks cut to three transactions a month

The central bank has allowed banks to impose a charge of Rs 20 per transaction on additional use of ATMs. The central bank has allowed banks to impose a charge of Rs 20 per transaction on additional use of ATMs.
ENS Economic Bureau | Mumbai | Posted: August 15, 2014 12:35 am | Updated: August 15, 2014 10:02 am

Get ready to pay more for using automated teller machines (ATMs). The Reserve Bank of India (RBI) has cut the number of free transactions at ATMs of other banks in six metros to three from five a month following persistent demand from banks.

The RBI has also advised banks that at least five free transactions (inclusive of financial and non financial transactions) per month should be permitted to the savings bank account customers for use of own bank ATMs at all locations. “Beyond this, banks may put in place appropriate board approved policy relating to charges for customers for use of own bank.”

The central bank has allowed banks to impose a charge of Rs 20 per transaction on additional use of ATMs. The six metro centres are: Mumbai, New Delhi, Chennai, Kolkata, Bangalore and Hyderabad. “Nothing, however, precludes a bank from offering more than three free transactions at other bank ATMs to its account holders if it so desires,” the RBI said in a notification to banks.

If the customer of one bank goes to the ATM of another bank, he can use it free only for three times in a month. If the customer uses his bank’s (where he maintains the account) own ATM, he can use it free for five times.

In the case of other bank ATMs, the reduction will not apply to small, no frills and Basic Savings Bank Deposit account holders.

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