RBI Limits the Number of ATM Transactions from November
The RBI has started putting limitations on the withdrawals from ATMs. From November, there will be a limit of 3 transactions per month from ATMs of other banks and 5 from the same bank in six metropolitan cities. Once the permitted limits have been crossed, the user will have to pay a fee of twenty rupees for using ATMS. This limit will be imposed in Delhi, Chennai, Hyderabad, Mumbai, Bangalore, and Kolkata.
This limitation will be effective from November 1, 2014. At present, the number of transactions from other banks’ ATMs is 5. This limitation will not be applicable for small or basic savings bank deposit account holders. This is also not applicable to account holders who are located in cities other than the above mentioned metros.
The RBI has stated that this limitations has been applied to reduce the cost of ATM deployment and maintenance for the banks and also due to the increasing interchange outgo due to free usages. RBI has also stated that banks must make sure that no complaints will be arisen from customers.