As per the Reserve Bank Of India’s (RBI) new guidelines that come effective from today, bank customers in six metros – Delhi, Mumbai, Chennai, Kolkata, Bangalore and Hyderabad are allowed to withdraw money or carry out non-financial transactions like Balance Enquiry where they hold savings/current accounts free of charge only 5 times per month.
Every transaction beyond the threshold of 5 will be levied Rs 20 per use. Also the number of free transactions at ATM’s of non home banks has been cut from 5 times a month to 3 times a month. This has come as a shock to most of the ATM users. Also most of the metro users rely on ATMs. For users outside the 6 metros the existing rules remains unchanged.
The cap in the number of free ATM transactions will not apply on small/no-frills or basic savings bank deposit holders who will continue to enjoy 5 free transactions. India has a total of 1.6 lakh bank ATM’s across the country as of March 2014.