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?
Author: Arun Prabhudesai
Arun Prabhudesai is founder / chief editor at trak.in. He jumped the Entrepreneurship bandwagon in early 2008 after a long 13 year stint in I.T Industry. You can follow him on twitter @trakin or get in touch with him at admin-at-trak-dot-in or 91.9822575676.Related posts:
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{ 6 comments… read them below or add one }
5 withdrawals a month seem reasonable. People who have been misusing the system by withdrawing small amount every day will learn to manage their cash in a better way.
i wish that this service continues but 5 withdrawals a month also seems reasonable.
very poor
This is a very good step governement has taken and it should be appreciated. 5 times in just 30 days are more than enough for a person to withdraw money for his expenses and even after u need to withdraw the amount free you can approach your bank ATM. With this the bank can avoid people who uses the ATM as theirown pocket.
5 transaction in a month if person check only balance that is count in five number
the decision was very poor.because all the banks doesnt have ATMs in all the cities.so people will find it difficult to withdraw cash.this decision will trouble people .so RBI has to withdraw this decision.