Restriction on third party ATM withdrawal
While answering to a question in
Parliament on 25th Nov 2014 regarding the reduction of number of free
withdrawals from other banks ATMs. The Minister of State for Finance
Shri Jayant Sinha said, the decision was taken by Reserve Bank of India
in view of the Indian Banks’ Association’s plea for removal of free
transactions at other banks ATMs at metro centres.
“Reserve Bank of India (RBI) has issued
directives to Banks under Section 10(2) read with Section 18 of Payment
and Settlement Systems Act, 2007 (Act 51 of 2007), that the number of
mandatory free transactions for savings bank account customers at other
banks’ ATMs is reduced from the present five to three transactions per
month (inclusive of both financial and non-financial transactions) for
transactions done at the ATMs located in the six metro centres, viz.
Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad. The banks
can offer more than three free transactions at other bank ATMs to their
account-holders.
The decision was taken by Reserve Bank
of India in view of the Indian Banks’ Association’s plea for removal of
free transactions at other banks ATMs at metro centres and other large
townships in the country in view of the growing cost of ATM deployment
and maintenance incurred by banks on the one hand as well as the rising
interchange out-go due to these free transactions”.
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