Restriction on third party ATM withdrawal

Restriction on third party ATM withdrawal

Restriction on third party ATM withdrawal
Restriction on third party ATM withdrawal

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA

QUESTION NO 237
ANSWERED ON 25.11.2014

Restriction on third party ATM withdrawal

237 Shri Devender Goud T.

Will the Minister of FINANCE be pleased to satate :-

a) whether the Reserve Bank of India (RBI) has asked banks to restrict number of free withdrawals from third party ATMs to two from the existing five transactions in cities;

b) whether there is also a proposal to increase the transaction fee of Rs.20 for every transaction at non-home ATM banking machines;

c) the reasons for taking these measures which are detrimental to the account holders; and

d) the details of ATM network of nationalized and private banks in the country ?

ANSWER

The Minister of State in the Minisry of Finance
(SHRI JAYANT SINHA)

a) 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.

b) No, Sir

c) 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.

d) The details of ATM network of nationalized and private banks in the country is given in Annexure.

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