From Saturday (November 1), frequent withdrawal of money from ATMs will be costlier with the Reserve Bank of India (RBI) having imposed a limit of 3 cross-bank transaction per month from other banks and 5 from same bank.
As per the new RBI guidelines passed earlier in August, a customer will have to pay a fee of Rs. 20 per transaction for using the Automated Teller Machines (ATMs) beyond the permitted number of 3.
Prior to this, banks permitted 5 free transactions from cross-banks.
Customers will also be charge Rs. 20 for using their own bank ATMs after the allowed 5 transactions limit.
These new guidelines, which were issued in pursuance of a representation made to the central bank by Indian Banks’ Association, will come into effect from tomorrow in six metropolitan cities of Delhi, Mumbai, Chennai, Bangalore, Kolkata and Hyderabad.
“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 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.