RBI limits withdrawls, transactions from third party ATMs

Apex bank has sent a communication in this regard to Indian Banks` Association (IBA) and this is expected to be implemented shortly

The Reserve Bank of India (RBI) has put a cap on the amount one can withdraw from another bank's ATM while also restricting the number of such transactions in a month.

Banks had told the central bank to alter the rule, as massive third-party usage and small-ticket withdrawals by customers was putting a financial strain on their infrastructure. The Indian Banks' Association (IBA) had submitted its recommendations last month.

So from October onwards, one can only withdraw as much as Rs10,000 every time one uses another bank's ATM. In addition, one can do so only five times a month. For more than five third-party transactions in a month, one has to pay Rs 20 per transaction. However, there will be no such limit when a cardholder is using his/her own ATMs.

The RBI had allowed free usage of ATMs across the country from April 1. Currently, around 40,000 ATMs are operated by about 80 banks in the country.

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