Banks still to cap on free usage of ATM
Posted on: 03/Nov/2014 5:35:18 PM
Although RBI had allowed banks to take some charges on the ATM transactions that are beyond five in the metros, lenders are still to restrict volume of free withdrawals, even for their own clients at the home ATMs. Leading lending banks such as ICICI Bank, Axis Bank, HDFC Bank and SBI are still to announce any cap to be levied on free transactions. Lenders have been refraining from placing caps as restriction on the free usage of ATM, since it would only increase the footfall in the branches, according to a public sector bank’s senior official.
Increase in visit of the customers to the bank branches for the purpose of several non-financial work and withdrawals only would increase cost that is higher than about Rs. 20, said a bank official. Several banks have been weighing options to be in position to absorb it and to offer more volume of free ATM transactions per month, as per an official placed in a senior position of a leading private bank. According to circulars from the RBI, banks can charge freely Rs. 20 for transactions that are beyond 5 from 1st November. However, it also states that the banks are free to offer higher volume of transactions to the to the clients, if it desires to allow.
The bank customers of 6 metros, namely Delhi, Chennai, Mumbai, Bengaluru, Hyderabad and Kolkata are permitted to carry out few non-financial transactions such as mini-statements at the bank ATMs or to withdraw money, where they hold current or saving accounts, without any charge, but just five times in a month, as per the recent RBI circular.
