RBI to consider limiting free ATM transactions
The Reserve Bank will consider reducing the
number of free ATM withdrawals, as recommended by the Indian Banks’
Association, in an effort to cut down on cash transactions in the economy.
“We will examine that
(IBA recommendation of cutting down number of free ATM transaction to 5 per
month). Many other proposals have come. The whole idea is that people are using
too much of cash and adding to the costs. We will examine all those issues,” RBI
Deputy Governor, H.R. Khan.
The RBI has been taking
measures to cut down on cash transactions in the economy in a bid to minimize
the risk of money laundering in the system.
IBA recently recommended
a change to include all the ATM transactions, including the own-bank ones, to 5
per month in view of rise in costs due to additional security measures being
put in place following the Bangalore incident wherein a person was brutally
attacked at the ATM.
