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18 September, 2014

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RBI cuts number of free third-party ATM transactions to 3 per month

New Delhi: The Reserve Bank of India on Thursday cut number of free transactions at ATMs of other banks in metros to 3 from 5 a month.
The RBI has also imposed a charge of Rs 20 on additional use of such third party ATMs.
Holders of savings accounts enjoyed five free transactions per month at the ATMs of banks other than their own, while there is no such limit for use of own-bank ATMs.

Banks net off transactions at the end of the month between themselves and pay Rs. 15 per transactions plus taxes to each other irrespective of whether a withdrawal was within the limit in case of customers involved.
Public sector banks had a combined 72,340 branches, of which 37,672 had onsite ATMs, as of March 2013.
Indian Bank Association in January had recommended a change to include all the ATM transactions, including the own-bank ones, to 5 per month in view of rise in costs due to additional security measures being put in place following the Bangalore incident wherein a person was brutally attacked at the ATM.
Following the incident — where a woman employee of Corporation Bank was attacked by an intruder with a machete in November — security arrangements of 1.40 lakh ATMs of banks were reviewed leading to additional costs for manning ATMs.
IBA had suggested to the RBI to maintain the current practice of making an account holder pay Rs 20 per transaction for the ones beyond the limit it has proposed.



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