An End To Third-Party ATM’s Free Usage

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By divya

Published: October 12, 2009

On April 1st 2009, The Reserve Bank Of India (RBI) had taken an extra concern and had given the freedom of using Third party ATM’s (Automatic Teller machine) all over India. This had benefited millions and millions of account holders who were provided with the freedom of using ATM’s (for the purpose of withdrawal, balance enquiry) of Banks were they do not hold an account.

RBI Imposes New Rules on “Free Usage Of Third Party ATM’s”

However, during August 2009 the apex bank had decided to put an end to this freedom. Mr.K Ramakrishnan, the Chairman of Indian Bank’s Association (IBA) has informed the press that RBI had given this communication to IBA and was expected to implement this during mid of October.

On October 15 2009, RBI had decided to curtail the use of Third party ATM’s. The following restrictions will be effective on the above said date.

• Maximum of 5 transactions per month will be allowed as free usage in a third party ATM.
• The sixth transaction will be charged.
• Anything above the cap limit of Rs.10k per withdrawal will not be allowed from any third party ATM’s

Post April’s decision on free withdrawals in any third party ATM’s by RBI, other banks had approached RBI through Indian Bank’s Association stating that this has lead to a financial burden on the Banks as there were a huge number and small amount withdrawals from third party ATM’s. Henceforth,  the policy was revised to the set restrictions on every third party ATM withdrawals .

Tagged with: cap amount, Indian Banks association, Reserve Bank Of India, Third Paty ATM, withdrawal limits

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