Using the ATM? BE careful! New rules will soon apply

Overview:

ATM transactions in the metropolitan cities (Delhi, Mumbai, Kolkata, Hyderabad, Chennai, and Bangalore) will face limitations imposed by the RBI. Frequent withdrawal of money will become expensive wherein customers will be able to make 3 transactions from other banks and 5 from their bank. In case, the customer crosses the limit, then he/she will have to pay Rs. 20/- against each transaction. The RBI stated that this rule will come into effect from 1st November 2014.

This step was taken to cut down the cash transactions in these cities. The whole concept is that people are using an excess of cash and adding to the costs. The RBI deputy governor HR Khan had stated before that this issue will be taken up soon so that the number of cash transactions can be tackled by the government.

This measure has been mainly taken to cut down on cash transaction in the economy which in turn, will minimise the risk of money laundering in the system. Apart from the number of transactions, RBI has also given strict guidelines on having CCTV Cameras installed in each ATM Centre along with a security guard to safeguard and protect the customers.

The RBI has made it very clear that these rules will not apply to small/basic savings/no frills bank deposit account holders.
Apart from this, these regulations will not be applicable to customers who are not the residents and account holders other than these six metro cities.

Updated: December 2, 2016 — 12:28 pm

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