ATMs have become an important part of our lives. It is the best solution when we need money in cash. It is available 24 hours and 365 days. We love using ATMs but may be not more. According to various media reports now you can use your ATM only for 5 times in a month and you will have to pay if you uses it for the sixth time. This new rule has been implemented for the metro cities users. However, this new rule is not transparent and is creating a lots of confusion.
According to the new policy of RBI which was released on Oct, 10th and will be implemented from 1st Nov, a metro city user can use ATM of their own bank only for 5 times in a month and ATMs of other banks for 3 times in month. This 5 and 3 times include both cash withdrawals and other activities. For instance, if you use ATM for checking your balance or for getting mini statement, it would also be counted. After 5 uses, you will have to pay Rs. 20 per transaction and again transaction include both withdrawals and other activities. However, this policy is applicable to bank account holders of 6 metro cities which are Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore.
The reason behind this policy is not clear and in the notification it was stated that “Taking into account the high density of ATMs, bank branches and alternate modes of payment available to customers, the number of mandatory free ATM transactions for savings bank account customers at other banks’ ATMs is reduced from the present 5 to 3 transactions per month (inclusive of both financial and non-financial transactions)”
This policy is limited to the metro cities only and users apart from these cities can use ATMs of their own bank free of charge and for unlimited times. However, the limit for using ATM of other bank is limited to 5 transactions. Although, going by scenario changes are there that soon this new policy will be implemented to other cities too.
If your bank is generous then there is a good news for you as RBI has made it clear that the rule of 3 free transactions for using other bank’s ATM can be changed by the bank as per their policies. For instance, a SBI customer can use ATM of other bank at free of cost and for unlimited times but only if he maintains a deposit of Rs 1 lakh in his savings account
Bank of Baroda has also its own policies in which its customer can use their own ATMs free of cost. Although, for using other bank’s ATM for the 4th time, they will have to pay Rs. 20.
This new policy seems simple and clear but it is not so. For example, if a person uses his own ATM for 5 times in a metro city but then again uses his own ATM for the sixth time but in the rural town, then he will be charged Rs. 20 or not because the policy states then using own ATM for more than 5 times is not free but the same policy says that this rule is not applicable in rural area.
Banks charge annual fees from the customers on the name of ATM maintenance but still it can’t use his own ATM for free. There is no statement from the RBI over this confusing policy, however we will keep you updated about this news.
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