RBI Goes Easy on ATM Users, Offers More Flexibility

Oct 11, 2014 Tushita Economy 0

The RBI on Friday notified that at non-home ATMs, the allowed number of non-chargeable transactions would continue to be three across six acknowledged metros.

But in non-metro centres, the customers can still use the card twice more without it costing them any charges, in the same month.

“As per the latest instruction, while this overall cap (five free ATM transactions) remains unchanged, three transactions, inclusive of both financial and non-financial, would be free of charge if carried out at other bank ATMs located in six metro centres,” said the RBI notification.

“Accordingly, if transactions are carried out at both six metro centres and other locations, the total number of free-of-charge transactions at other bank ATMs would continue to remain five,” it further said.

It was in August that the Reserve Bank had announced that from 5 free transactions per month, from other banks’ ATMs the permissible number of free ATM transactions would be reduced to just three.

These instructions were to hold good for both non-financial and financial transactions from savings account, for transactions from ATMs across six metro centres.

After a customer surpasses the allowed number of transactions in Mumbai, Delhi, Kolkata, Bangalore, Hyderabad and Chennai; they’d be obligatory to pay an additional sum of up to Rs 20.

The latest orders given out by the RBI would be effective from November 1, 2014.

Banks free to decide for themselves:

But in order to give full authority to the banks to decide such policies, the RBI also said that they can present more free transactions every month, at others’ or their own ATMs, than what the RBI suggests. The banks are also allowed to have different strategies for varying geographical locations, as per their will.

The banks can freely work out their own combos of non-metro and metro locations for allowing free transactions but they will have to keep in mind the convenience of the customers and the minimum requirements as per the RBI norms.

ATM, Economy, Indian Economy, RBI

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Tushita

Tushita is a political writer at thenational.net. Her deep rooted interest in politics, passion for writing and craze for travelling define her. Writing since her school days, she aspires to write lifelong and make the world a happier place to live with the power of her pen.