RBI reduces the number of free ATM transactions to 3 from 5 per month at metros
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The Reserve Bank of India on Thursday said the number of mandated free transactions for savings bank account holders at other bank ATMs located in six metro centres has been reduced from five to three per month.
The six metro centres -- Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad -- are well-served in terms of payment infrastructure.
This reduction in the number of mandated free transactions will, however, not apply to customers having no-frills/small/Basic Savings Bank Deposit Account (BSBDA) type of accounts as well as for transactions done by savings bank account holders at ATMs situated outside these six metro centres. Banks are also free to offer free transactions above this mandated limit.
Further, taking into account the scope for cross-subsidisation and with a view to ensuring more transparency in the pricing of these transactions, banks have been advised to provide their savings bank account holders with at least five free transactions per month at their own ATMs. Beyond this, banks may decide to levy transaction charges (not exceeding Rs.20 plus applicable taxes per transaction) which are decided in a transparent manner.
“Given the growth in cash access points and taking into account the associated costs of infrastructure to banks and the economy more generally, the Reserve Bank of India has decided to revise the existing directions relating to the use of automated teller machines (ATMs) and charges on their use,” the RBI said in a circular to banks.
Given that different banks may adopt different pro-customer policies with respect to ATM usage, and with a view to minimising customer grievances, banks have also been advised to put in place a mechanism to make customers aware of the location-status of the ATM (metro/non-metro) and also the fact that the transaction may attract charges.
The RBI said banks have been asked to put in place mechanisms to advise/alert customers regarding the number of free transactions availed during the month by him/her. (PTI - The Hindu)
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