The number of ATMs in India has risen to 1.6 lakh. Seven years back, it was just over 27,000. With the rise in the number of ATMs, the cost to banks to maintain them has shown an upward trend too.
Taking into account the grievance of the banks regarding the cost of infrastructure, RBI has allowed the banks to limit the free withdrawals from other bank ATMs in 6 Indian metros to 3 (instead of the current 5) and from its own ATMs to 5 in a month. The six metros where this rule will be applicable are Mumbai, Delhi, Kolkata, Chennai, Bangalore and Hyderabad. Those who stay outside these 6 metros will not be affected by this latest decision. RBI has instructed the banks to limit the fees for those who exceed five transactions from their own bank’s ATMs to Rs. 20 per transaction plus applicable taxes.
The regulator, however, has clarified that this rule will not be applicable to those who have basic Savings Bank accounts or no-frills accounts. The banks still have the discretion to not charge those who exceed the minimum number of transactions per month, but it remains to be seen as to how many of them will do so.
Click here to read the entire report: http://bit.ly/1rR5DBs
Taking into account the grievance of the banks regarding the cost of infrastructure, RBI has allowed the banks to limit the free withdrawals from other bank ATMs in 6 Indian metros to 3 (instead of the current 5) and from its own ATMs to 5 in a month. The six metros where this rule will be applicable are Mumbai, Delhi, Kolkata, Chennai, Bangalore and Hyderabad. Those who stay outside these 6 metros will not be affected by this latest decision. RBI has instructed the banks to limit the fees for those who exceed five transactions from their own bank’s ATMs to Rs. 20 per transaction plus applicable taxes.
The regulator, however, has clarified that this rule will not be applicable to those who have basic Savings Bank accounts or no-frills accounts. The banks still have the discretion to not charge those who exceed the minimum number of transactions per month, but it remains to be seen as to how many of them will do so.
Click here to read the entire report: http://bit.ly/1rR5DBs
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