Banks want to cap free ATM use at five visits a month

The Indian Banks' Association has suggested to the Reserve Bank of India that free use of automated teller machines (ATM) should be capped at just five transactions a month, including that of the bank in which the account is active.

The recommendation follows overzealous state governments' order to banks to install security guards at all ATM booths after a woman banker was assaulted by a burglar in Bengaluru.

"Even now, five free transactions are enough to meet the withdrawal requirements of most of the account holders. For balance enquiries, sms is a more convenient option," said M Tanksale, CEO of IBA, the lobby group.

Now, there is no limit on the number of free transactions an account holder can do at the ATMs operated by the bank in which he has an account.

Free transactions at ATMs operated by other banks are capped at five a month. The decision not to levy any charges on customers for doing transaction at their own bank ATMs has not been imposed by RBI on banks, but was an initiative taken by banks in a bid to reduce workload at branch and improve customer service.


Source:-The Economic Times