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. 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 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. "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. 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). Banks have
been allowed to charge a maximum fee of Rs 20 per transaction beyond
the stipulated ceilings. 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. The central bank has asked lenders to
ensure fair and transparent information to customers regarding the
new charges with regard to ATM withdrawals beyond the stipulated cap.
It has also asked banks to put in place proper mechanism to track
such transactions and that no customer inconvenience or complaints
arise on account of this. 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.
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