Banks to cap third party ATM cash withdrawal from mid-October

A file photo of ATM. Photo: S.Siva Saravanan

A file photo of ATM. Photo: S.Siva Saravanan  

Banks have decided to put a Rs 10,000 cap per third party ATM cash withdrawal from October 15, besides limiting such transactions to five in a month.

Indian Banks’ Association, which is the industry lobby of Indian banks, has sent a circular to its 150 member banks directing them to implement the decisions from mid-October, a source close to the development said.

“IBA has sent a circular to all banks asking them to implement these decisions on third party ATM transactions from October 15,” the source said.

Early this month, the Reserve Bank had put a Rs 10,000 cap per withdrawal from ATMs not owned by the bank in which the customer has an account, besides limiting such transactions to five in a month.

The apex bank had sent a communication in this regard to Indian Banks’ Association (IBA).

IBA 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.

With the number of third party transactions surging post-April, banks approached the Reserve Bank through IBA to revisit the current norms and make necessary modifications.

Though IBA had also recommended a minimum limit of Rs 1,000 on third party ATM withdrawals, this was rejected by the Reserve Bank to protect the interest of small withdrawers.

A letter from the Editor

Dear reader,

We have been keeping you up-to-date with information on the developments in India and the world that have a bearing on our health and wellbeing, our lives and livelihoods, during these difficult times. To enable wide dissemination of news that is in public interest, we have increased the number of articles that can be read free, and extended free trial periods. However, we have a request for those who can afford to subscribe: please do. As we fight disinformation and misinformation, and keep apace with the happenings, we need to commit greater resources to news gathering operations. We promise to deliver quality journalism that stays away from vested interest and political propaganda.

Support Quality Journalism
Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Jun 1, 2020 11:52:11 AM |

Next Story