NEWS & ADVICE : PERSONAL LOAN
RBI puts a limit on Third Party ATM usage
By Vaibhav Aggarwal
Oct 20, 2009
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From October 15, there would limits to the amount and number of transactions for a customer using ATMs of other banks. According to the new regulation, a customer would be allowed Rs 10,000 per withdrawal and the number of transactions would be limited to five per month. The banks would charge Rs 18-20 per transaction in excess of five.

However, all banks are not offering this facility of free five withdrawals to current account holders and no-frills account holders. Some of these banks include HSBC and HDFC banks.

In August, reserve bank of India, had asked banks to restrict customers from using ATMs of other banks from mid- October. This was recommended by the Indian Bankers' Association (IBA).

The association had submitted its recommendations to the apex bank in July last year emphasizing the financial burden on the banks due to large number of these third-party transactions. The large number of transactions and small amount withdrawals resulted in high interchange expenses for the bank, IBA added.

RBI had introduced free access to ATMs of other banks six months back on April 1st, 2009. This move, however, was short-lived.

 


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