Just 5 months back, RBI had announced that ATM customers will be allowed to withdraw money from any bank ATM of their choice with levying any extra charges.
But citing logistics issue, the Indian Banks Association (IBA) has now put certain limits for doing transactions in banks other than the home bank.
Based on the information gathered over last 5 months, since the inter-bank withdrawals were introduced,
There were a small minority of users who withdrew very large sums on account of high card limits given by some banks to privileged customers.
At the other extreme, there were some customers who withdrew miniscule amounts, or made other kinds of inquiries. This created several logistics problems causing avoidable expenditure for banks at the cost of the common user. (source)
Now, I think it is a wise decision and probably should have taken when it was launched initially.
Basically inter-bank ATM withdrawal service should (thats what I think) be used in emergency cases when you are unable to carry out transactions in your Home bank ATMs.
It will be quite unfair on the home branch to offer unlimited ATM services to users from other branch.
Infact, the new rule that was announced put banks like ICICI and HDFC who had high number of ATMs in big disadvantage compared to other banks who had less number of ATM locations.
I think putting a limit to the transactions from outside-home bank ATMs helps both the Banks as well as their customers.
According to the new proposal made by Indian Banks Association (IBA),
The customer will be allowed to make 5 free transactions upto Rupees 10,000/- above which a charge of Rs. 20/- will be levied to the user.
Like I mentioned earlier, it is a fair proposal and one that should help Consumers as well as banks equally!
What is your take on this new proposal?