From long back the banks are discussing over the issue of reducing the free ATM transactions made from non home ATM branches. Now the banks are planning to reduce the number of transactions made from non home branches from 5 to 2.
The customers hereby will be required to pay a sum of Rs 20 if they will make any transactions more than 2 from non – home branch. Free transactions allowed now will be 2 only. Banks reported they feel that the customers are making misuse of the free transactions and therefore the number of withdrawals has increased. Hither to customers are also facing problem due to increase in charges, as per the new guidelines in order to enhance the security banks have increased the charges.
Currently the bank charges Rs 15 for the transaction and banks wanted to increase this. Following a representation from banks, RBI agreed to cap the number of free withdrawals to five a month and limited the total cash withdrawal to Rs 10,000 from third-party ATMs, but now the transactions will further reduce to two.