ATM withdrawals from a different bank: First 2 times will only be free!
Posted on: 04/Aug/2014 2:34:16 PM
From now, ATM withdrawals from a different bank will be free only for the first 2 times.
From the 3rd time onward, additional fees of Rs. 20/- will have to be paid.
This order has been released by Reserve Bank of India.
This has upset & shocked the public.
ATMs have made cash withdrawals simple & fast avoiding the time-consuming procedure of filling up cheques & standing in the queue. ATMs have now proliferated and available almost in every street.
When ATMs were installed for the first time, cash could be withdrawn only from the ATMs of the bank where account is kept. This restriction was withdrawn in 2009. It was announced that all customers of different banks can use any ATM. Since then, ATMs have become hugely popular as a ready means of cash withdrawal.
The cash available in some ATMs got quickly exhausted. This led to additional expenses for maintenance. Hence, the banks had an arrangement of paying Rs. 18 for each transaction from different bank ATM cash withdrawal. This also meant additional expenditure. The banks approached RBI for imposing some restriction of open use of ATMs.
RBI brought the restriction that different bank ATMs can be used for free only for 5 times in a month. From the 6th time, additional fess of Rs. 15/- per transaction was taken.
However, the restriction has been brought down only to 2 free withdrawals as per recent RBI orders.
However, the facility of 5 free transitions is continued for villages and rural areas.
The practice of using any ATM with free transaction was very handy for the public as they could make use of the nearest ATM.
Now, the recent order has upset them!
