Free ATM transactions to be curtailed from December 1

Written by | November 30, 2014 | 0

New Delhi: Beginning December 1, 2014, more than 5 monthly ATM transaction may cost you over Rs 20 and a non-financial transaction will cost over Rs 8.5 as penalty. Several banks have already announced that they will charge customers for additional transactions.

The Reserve Bank of India (RBI) on November 1, 2014 released a circular that allowed banks to curb free ATM transaction service offered to customers residing in metro cities and charge beyond a certain limit.

However, not all banks implemented the guidelines, but slowly some banks are adopting this new rule and planned to put in place new rules from December 1.

Meanwhile, Punjab National Bank (PNB) on Wednesday said it will not put a cap on number of free ATMs transactions for its saving account customers.

The RBI had advised that at least five free transaction (inclusive of financial and non financial transactions) per month should be permitted to the saving bank account customers for use of own bank ATMs.

The number of mandatory free ATM transactions for saving bank account customers at other bank ATM located at six metro cities has been reduced from present 5 to 3 transactions per month.

The six cities that RBI has identified are —Mumbai, New Delhi, Chennai, Kolkata, Bangalore and Hyderabad.

Filed in: National

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