Permitted to Withdraw Cash Five Times in a Month Free of Charge from other Banks’ ATMs

Customers of a Bank Allowed to Withdraw Cash Five Times in a Month Free of Charge from other Banks’ ATMs

Indian Banks’ Association (IBA) has reported that banks have been permitted by Reserve Bank of India (RBI) to allow free cash withdrawal at their ATMs by customers from other banks upto five times in a month free of charge. Banks are generally complying with the guidelines issued by RBI in this regards from time to time.

No incident regarding non-conforming of RBI’s directions had come to the notice of the Government.

This information was provided by the Minister of State for Finance, Shri Namo Narain Meena in reply to an Unstarred Question in Lok Sabha today.

Source: PIB

Free access to ATMs of other banks closes on October 15

From Thursday there will be no more unlimited free cash withdrawals from ATMs of other banks. Now one can only avail of five free cash withdrawals in a month using third-party ATMs.

Each additional transaction will cost Rs 20 while the maximum cash withdrawal from a third-party ATM will be limited to Rs 10,000 per transaction.

Moreover only savings account holders will be able to use ATMs of other banks and current account holders won't have any access.

The Reserve Bank of India (RBI) had earlier agreed to the demands made by Indian Banks' Association (IBA) that there should be a restriction on cash withdrawals using third-party ATMs.

IBA had submitted its recommendations to the RBI in July citing financial burden on banks due to a large number of third party usage and small-ticket withdrawals, resulting in high interchange expenses for banks.

The short-lived freedom of using ATMs of other banks, for services like cash withdrawals and account enquiries, without being charged for the same, was brought in force by the RBI on April 1, just over six months back.

Source:IBN