You may soon be charged for more than 3 ATM withdrawals
Currently, banks allow five free ATM transactions to their own customers every month, post which they charge a fee of Rs 20 per transactions, plus service tax and non-customers are allowed three free transactions in six top metros and five in other cities.
As part of its efforts to disincentivise use of cash, bankers have floated a proposal in their pre-Budget meet with the Finance Minister suggesting a cut-down in the number of free ATM withdrawals to three per month including from banks where one holds an account, reports Economic Times . Currently, banks allow about 8-10 free transactions including five to their own customers every month and 3-5 for non-customers. Post the limit a fee of Rs 20 per transactions, plus service tax is charged. Non-customers are allowed three free transactions in six metros including Mumbai, New Delhi, Chennai, Bengaluru, Kolkata and Hyderabad, whereas the remaining cities get five free transactions since November 2014. Bankers believes if only three free transactions are allowed per customer then people will be pushed towards digital transactions. Most banks have reportedly witnessed a 10-20 percent drop in ATM transactions since demonetisation was implemented in November. A further drop would increase costs making the ATM business unviable. Increasing transaction costs is another option, but the government is not keen to take that route.
Currently, banks allow five free ATM transactions to their own customers every month, post which they charge a fee of Rs 20 per transactions, plus service tax and non-customers are allowed three free transactions in six top metros and five in other cities.
As part of its efforts to disincentivise use of cash, bankers have floated a proposal in their pre-Budget meet with the Finance Minister suggesting a cut-down in the number of free ATM withdrawals to three per month including from banks where one holds an account, reports Economic Times . Currently, banks allow about 8-10 free transactions including five to their own customers every month and 3-5 for non-customers. Post the limit a fee of Rs 20 per transactions, plus service tax is charged. Non-customers are allowed three free transactions in six metros including Mumbai, New Delhi, Chennai, Bengaluru, Kolkata and Hyderabad, whereas the remaining cities get five free transactions since November 2014. Bankers believes if only three free transactions are allowed per customer then people will be pushed towards digital transactions. Most banks have reportedly witnessed a 10-20 percent drop in ATM transactions since demonetisation was implemented in November. A further drop would increase costs making the ATM business unviable. Increasing transaction costs is another option, but the government is not keen to take that route.
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