Reserve Bank of India has on Thursday imposed on money withdrawals from ATMs in India.
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.