ATM use over 5 times per month will attract fee now

In a month beyond five times, using ATM’s to withdraw money or for other purposes like balance inquiry will attract a levy of Rs. 20 per transaction.
From Saturday the new guidelines that comes into force as per the Reserve Bank’s (RBI), in six metros – Delhi, Bangalore, Hyderabad, Kolkata, Chennai and Mumbai to withdraw money bank customers are allowed and at ATM’s of bank carry out non-financial transactions like mini statement, five times a month free of charge, where they hold saving/current accounts.

Beyond this threshold Rs. 20 per use will be charged of every transaction.

According to the RBI’s latest guidelines at ATM’s (Automated Teller Machines) the number of free transactions of non-home bank has cut from five times to three times a month.
The high density of ATM’s taking into the account, to the customer’s bank branches and alternate modes of payment available, at other banks for savings bank account customers the number of mandatory free ATM transaction? This year in August, RBI had said in a notification issued that ATM’s is reduced from the present 5 to 3 transaction per month (inclusive both financial and non-financial transactions).
The RBI, however, clarified that if it so desire then a bank nothing precludes to its account holders from offering more than three transactions at other bank ATM’s.
On no-frills/small or basic saving bank account holder the cap will not apply in the number of free ATM transactions, who will continue to enjoy five free transactions.
On using other banks ATM’s for savings bank account customer, the facility of five free transactions will remain unchanged at places other than the six metro centers.
As, of March 2014 across the country India has a total of 1.6 lakh bank ATM’s.
In pursuance of a representation made to the RBI new guidelines were issued. By Indian Banks Association due to the free transactions of ATM deployment on the bank of growing cost and by banks maintenance incurred as well as rising interchange outgo.

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