Watch out if you are repeatedly withdrawing cash from ATM’s other than from your Home Bank’s ATM.
What started as a welcome move by Banks in April 2009 (of Free unlimited any bank ATM access) of this year will soon come to an end. No more un-restricted withdrawals from ATMs of other banks. The consumer delight for free ATM withdrawals has been short-lived.
But there is a reason for this restriction to come about as we discussed it in out earlier post when the Indian Banks Association (IBA) had requested for certain steps to be taken in order to counter logistics issues that were faced by the banks.
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.
According to the new Policy
From October 15, a customer can take out a maximum of Rs 10,000 per withdrawal from ATMs not owned by the bank in which he has an account, and the number of such transactions would be limited to five a month.
A savings account holder will get five free third-party transactions a month and could be charged from sixth onwards. However, current account holders might not get any free third-party usage.
I think this is a fair decision – 5 withdrawals a month are more than enough – Most of the times it is possible for us to go to Home branch ATM.
What do readers think about this change?