Banks limit free use of third party ATMs

Posted By: Staff
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Mumbai, Aug 21: The Reserve Bank of India (RBI) has reportedly approved the Indian Banks Association (IBA) proposal to levy a service charge if someone uses a thrid-party ATM beyond five times in a month.

This comes just five months after a decision was taken to scrap the charges on using Automated Teller Machines (ATMs) of other banks. The Indian Banks Association (IBA), the representative organisation of private and public sector banks in India has propsed a limit of five free transactions instead of allowing unlimited transactions.

"Beyond five transactions, we propose to levy a transaction fee of Rs 20 per transaction for using another bank's ATM," said IBA Deputy Chief Executive K Unnikrishnan.

"It will be optional on the part of the banks to levy this charge on customers. We have not made it mandatory but left it to their (banks') discretion," Unnikrishnan added.

Now that the RBI has approved this proposal, it would not be improper for the banks to levy the service charge said Unnikrishnan.

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