RBI caps third-party ATM withdrawals to Rs 10,000 & limits free use to 5 times a month

From first day of April 2009, entire ATM network—numbering over 40,000 of the domestic banking industry is available to customers from any bank for transactions for no fee at all, irrespective of the banks in which they have their accounts, Now Customers will not be levied any fee on cash withdrawals using ATM and debit cards issued by other banks.

However, now The Reserve Bank of India has decided 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 from 1st october 2009.

The Indian Banks Association (IBA), proposes to levy a transaction fee of Rs.20 per transaction for using another bank's ATM, Beyond five transactions.

RBI has taken this step in view of the financial burden faced by banks on account of huge number of third party usage and small-ticket withdrawals.

For detailed RBI guidelines on charges for ATM usage.... Click here

Report on Indian ATM Industry
Special Section on ATMs
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