Using ATMs of Other Banks Chargeable from Today
People’s freedom to use ATMs of other banks for services like cash withdrawals and account enquiries without being charged for the same is being curtailed after a short stay.
From Thursday there will be no more unlimited free cash withdrawals from ATMs of other banks. Now one can only avail of five free cash withdrawals in a month using third-party ATMs.
Now, each additional transaction will cost Rs 20 while the maximum cash withdrawal from a third-party ATM will be limited to Rs 10,000 per transaction.
Also, only savings account holders will be able to use ATMs of other banks while current account holders won’t have any access.
It may be mentioned that the Reserve Bank of India (RBI) had earlier accepted the demands made by Indian Banks’ Association (IBA) for a restriction on cash withdrawals using third-party ATMs.
In its recommendations submitted to the RBI in July, IBA had cited that financial burden is increasing on banks due to a large number of third party usage and small-ticket withdrawals, resulting in high interchange expenses for banks.
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