Bank customers have resented the RBI’s new rule which states that more than five transactions a month at an ATM will be charged Rs. 20 each. Since this applies to home bank ATMs and covers all transactions, including change of pin or requesting a mini statement, residents say this will be extremely inconvenient.
“It is unsafe to keep large amounts of money in hostel rooms. So we usually withdraw a few hundreds at a time,” says M. Shiva, a student.
Tasneem Aferoz, a resident of Nanganallur, says: “I will either have to withdraw large amounts or wait in a queue at the bank.”
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Banks, however, deny that this will overcrowd their premises. Sources in the RBI-Chennai region say the move was aimed at decreasing the use of currency notes and encouraging people to use virtual money.
“But we have told banks to decide if they want to increase the number of free transactions beyond the five. State Bank of India has come out with plans, including 10 free ATM transactions for those who meet certain requirements, and unlimited free transactions for those who maintain more than Rs. 1 lakh in their savings account,” the official adds.
However, the restriction will not apply to ‘no-frills’/basic savings accounts.
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( Reporting by K. Lakshmi, Kavita Kishore, Zubeda Hamid, and Sangeetha Kandavel )