Banks woo cap on ATM usage

Ever since RBI allowed card holders free and unlimited usage of any ATM, many banks witnessed an unprecedented increase in third party ATM usage. Besides, there have been  many small-ticket withdrawals, along with other transactions that have been stressful both to the banks and the ATM machines. Banks whose ATMs are used by customers can charge Rs 18 to Rs 20 per month to issuing banks in case of third party transactions.

Vijaya Bank Chairman and Managing Director Albert Tauro told Deccan Herald, “I am in favour of the move as it will avoid misuse of ATMs. For example, recentlyone of our  customers who had a nominal savings bank account balance of Rs 500, had used other banks’ ATMs for balance enquiry as many as 50 times in a month, and we had to pay Rs 8 per transaction.”  Echoing the same, Canara Bank Chaiman & Managing Director A C Mahajan said “RBI has come out with the guideline after feedback from banks who have had to bear the strain of third party transactions. This will definitely bring discipline among users as they will start planning their withdrawals in advance,” adding that it will also ease the pressure on ATM machines.

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