RBI fixes five free ATM withdrawals

RBI fixes five free ATM withdrawals

You can withdraw cash from other banks only five times a month.

The RBI’s decision also entails fixing a ceiling on the amounts that an ATM-user can withdraw.

In a communication to the Indian Banks Association (IBA), the RBI said that third-party ATM transactions, which were made free of cost in April, should not exceed Rs 10,000 per withdrawal.

The Central bank also made it clear that the number of free ATM transactions would be limited to five per month, beyond which a fee would be charged from customers.
The slew of measures were confirmed by IBA chairman K Ramakrishnan here on Friday. There are reasons to cheer up, however.

The RBI fiat would not be applicable to customers who seek to withdraw from their respective bank ATMs.

IBA, which is the industry lobby of Indian banks, had submitted its recommendations to the RBI last month citing the financial burden faced by banks on account of the huge number of third-party usage and small-ticket withdrawals.

With the beginning of the current fiscal, the RBI declared third-party ATM usage, including cash withdrawals and account enquiries, to be free of cost for all customers and said that banks could charge Rs 18-20 per month from other banks in case of third-party ATM transactions.

As the number of third-party transactions surged post-April, banks approached the RBI through the IBA to revisit the current norms and make necessary modifications. In this context, RBI Executive Director G Gopalakrishna said the Reserve Bank has received suggestions from IBA on the matter, which has been examined by the Central bank.
Among other suggestions, IBA had recommended a minimum limit of Rs 1,000 on third-party ATM withdrawals, which was rejected by the RBI ostensibly to protect the interest of small withdrawers.

DH News Service