Monday, December 1, 2014

ATM transactions to turn costly from today

ATM transactions to turn costly from today

With several banks taking up the recommendation of the Reserve Bank of India (RBI) to curtail the number of ATM transastions per month, using the Automated Teller Machine to withdraw cash from Monday (Dec 1) will be costlier.

Starting December 1, banks will reduce the number of ATM transactions to 5 per month for its saving account holders and thereafter will charge Rs 20 per usage. The banks will also charge over Rs 8.5 for a non-financial transaction beyond the given limited.

However, for saving account holders of other banks or cross-bank transaction, the number of has been limited to 3 only from the previous 5. After this, the banks will charge Rs 20 per for one financial transaction and Rs 8.5 for a non-financial transaction.

This act comes as per the new RBI guidelines passed earlier in August for six metro cities namely, Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore and which was circulated in on November 1.

While some banks had implemented the RBI ruling in November itself, many of the major banks will put it into force from today thereby making ATM transactions more costly.

However, the Punjab National Bank (PNB) and Corporation Bank have said they will not put a cap on number of free ATMs transactions for thier saving account 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) for transactions done at the ATMs located in 6 metro centres," RBI said earlier in a notification. 

The cap in the number of free ATM transactions will not apply on small/no-frills or basic savings bank deposit account holders who will continue to enjoy five free transactions.

At places other than the six metro centres, the facility of five free transactions for savings bank account customers will remain unchanged upon using other bank ATMs.

India has a total of 1.6 lakh bank ATMs across the country as of March 2014. 

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