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Harsh ATM Regime Begins, More than 5 Times Withdrawal Attracts Rs.20 Extra

rbiFinally, banks have succeeded to get what they want, every 6th withdrawal and above will get them Rs.20 extra from the gullible ATM holders in 6 metros from Saturday, Nov. 1, 2014 onwards, thanks to the Reserve bank of India, which has relented to bankers’ lobby.

All bank customers in six metros– Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore– are allowed to withdraw cash or just enquire bank transaction or transfer money and other non-financial transactions for 5 times in a month and pay Rs.20 extra every extra transaction.

If the ATM transaction if from other bank, then only three transactions will be free.In a stern note to all bank customers, the RBI said: “Taking into account the high density of ATMs, bank branches and alternate modes of payment available to customers, 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).”

The RBI, however, said the those with small/no-frills accounts can carry out five free transactions in any ATMs. It also applies to account holders in other cities or towns in India.

India currently has 1.6 ATMs, excluding the new ones set up this fiscal year. RBI said it had to accede the demand by banks to the latest provision in view of increased maintenance charges per ATM but did not say if there is any penalty on banks which keep their ATMs without cas for days together or ATMs which are defective.

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