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Reserve Bank of India limits free usage of third-party ATMs

The Reserve Bank of India, which made third party ATM transactions free from April, has said not more than Rs 10,000 can be withdrawn each time they are used and limited the number of such transactions to five a month.

The apex bank has sent a communication in this regard to Indian Banks’ Association (IBA) and this is expected to be implemented shortly, IBA Chairman K Ramakrishnan said.

“The Reserve Bank has agreed to put a cap of Rs 10,000 per withdrawal in such (third party) transactions. Also, the number of such transactions will be limited to five times a month,” Ramakrishnan said.

IBA, which is the industry lobby of Indian banks, had submitted its recommendations to the central bank last month citing the financial burden faced by banks on account of huge number of third party usage and small-ticket withdrawals.

Since April 1, RBI had declared third party ATM usage, including cash withdrawals and account enquiries, free for all customers and said that banks can charge Rs 18-20 per month from other banks in case of third party ATM transaction.

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