Reserve Bank to limit free use of third party ATMs
22 Aug 2009
Using ATMs of third party banks more than five times a month or withdrawing over Rs10,000 will soon attract service charges, according to a recent decision of the Reserve Bank of India. The new proposal is likely to come into force by October.
In April this year, RBI had made third party ATM transactions free of service charges. (See: RBI makes ATM services free from April 2009)
In its latest communication to the Indian Banks' Association (IBA), the bank put limitations to the amount that can be withdrawn and the number of times such third party ATMs can be used, according to IBA Chairman K Ramakrishnan.
IBA, which represents public and private banks in India, had recently approached the central bank and submitted recommendations for third party ATM services.
IBA deputy chief executive K Unnikrishnan said that a fee of Rs20 is proposed to be levied for transactions beyond the first five permissible ATM transactions in a month on another bank's ATM.
However, the new scheme will not be mandatory and banks can levy such charges at their discretion.
