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Starting today, ATM use over 5 times per month will attract fee of Rs 20


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Posted
NEW DELHI: Using ATMs to withdraw money or for other purposes like balance enquiry beyond five times in a month will attract a levy of Rs 20 per transaction from Saturday. As per the Reserve Bank's new guidelines that comes into force from Saturday, bank customers in six metros — Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore — are allowed to withdraw money and/or carry out non-financial transactions like mini-statements at ATMs of banks, where they hold saving/current accounts, free of charge only five times a month. Every transaction beyond this threshold will be charged Rs 20 per use. Besides, the number of free transactions at ATMs (Automated Teller Machines) of non-home banks has been cut to three times a month from five times. "Taking into account the high density of ATMs, bank branches and alternate modes of payment available to 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)," RBI had said in a notification issued in August this year. The RBI, however, clarified that nothing precludes a bank from offering more than three free transactions at other bank ATMs to its account holders if it so desires. 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. The new guidelines were issued in pursuance of a representation made to the RBI by Indian Banks' Association on the back of growing cost of ATM deployment and maintenance incurred by banks as well as rising interchange outgo due to free transactions.
http://timesofindia.indiatimes.com/business/india-business/Starting-today-ATM-use-over-5-times-per-month-will-attract-fee-of-Rs-20/articleshow/44997911.cms? lame :mad:
Posted

When they say cut to three withdrawals for non home banks, what does it exactly mean? Is it 3 withdrawals per non home bank? Or 3 withdrawals for all non home banks taken together?

Posted
When they say cut to three withdrawals for non home banks, what does it exactly mean? Is it 3 withdrawals per non home bank? Or 3 withdrawals for all non home banks taken together?
oh lawyer saab :nervous: it has to be max 3 withdrawals for all the non home banks :winky:
Posted
So pay money to withdraw your own money.Banks charge even for cheque withdrawls these days.This is poor from RBI.
If I am not wrong, there are even banks in europe that charge money for keeping deposits with them rather than paying interest. (That's a result of low or negative inflation , low growth rates)... India will eventually head in same way in abt 25-50yrs ..
Posted

They should use this to pay the guards who sit outside atms. In bangalore they sleep outside the atms, exposed to the conditions, and take all the risks.

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Banking has over expanded in India. By doing all this ****, they're just trying to download their losses on the customers. What is the point of having a bank branch every 2 kms? And if you want to, it is for YOUR petty gains. Don't tax the customer for it.

Posted

take a big amount once in a week? simple :dontknow: This is actaully a good thing. ATM's will become less crowded. Numerous times I have seen people taking a long time for taking 200 or 300 rs. some people take a ashwin-esque long pause for every action. check balance, check purse, check sms, take money, slowly count, again check balance, take the recipt, read it, then standing inside the ATM doing nothing like a buffallo for enjoing the AC, etc.

Posted
They should use this to pay the guards who sit outside atms. In bangalore they sleep outside the atms' date=' exposed to the conditions, and take all the risks.[/quote'] Most of the gaurds are retired police constables or private security. Which means they are pretty old. Sometimes, they ask for alms to drink tea or something. heartbreaking.
Posted

No bank is going to implement this anytime soon Customers using branches to withdraw cash causes lot more for banks(roughly 45 rs per transaction) than allowing ATM transactions . This is just RBI allowing an option doesn't mean its going to be in practice anytime soon

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