Days of free ATM transactions over; Rs 20 to be charged from Dec 1

India

oi-Nairita

Bengaluru, Nov 30: As it was declared earlier by several banks, the day has finally come when more than 5 ATM transactions a month may cost you over Rs 20. The new rule will come into action from Monday, Dec 1.

According to the new rule, a non-financial transaction will also cost over Rs 8.5 as penalty. The Reserve Bank of India (RBI) earlier on Nov 1 released a circular that allowed banks to curb free ATM transaction service offered to customers residing in metro cities and charge beyond a certain limit. [Using the ATM ? Careful. New Rules Apply]

While all banks are yet to implement the new guidelines from the RBI, many national leading banks including HDFC, Axis Bank declared that they would adopt this new rule and planned to put in place new rules from Dec 1.

However, Punjab National Bank (PNB) on Wednesday, Nov 26 said it will not put a cap on number of free ATMs transactions for its saving account customers.

According to RBI's new guideline, at least five free transaction (inclusive of financial and non financial transactions) per month should be permitted to the saving bank account customers for use of own bank ATMs. The six cities, where people will have to pay Rs 20 extra for more than 5 ATM transactions a month, are -- Mumbai, New Delhi, Chennai, Kolkata, Bangalore and Hyderabad.

The number of mandatory free ATM transactions for saving bank account customers at other bank ATM located at six metro cities has been reduced from present 5 to 3 transactions per month.

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