Fw: Fwd: Many people have a habit of withdrawing small amounts of money from the ATM to curb spending tendencies, but often end up with a high frequency of withdrawals. There are some others who are reluctant to use net banking or mobile banking facilities and depend on ATMs for checking account balance.

['Saibaba SV' via Thatha_Patty]

 



        * RBI restricts ATM transaction from Nov. 1
India Newzstreet  0:54
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Many people have a habit of withdrawing small amounts of money from the ATM 
to curb spending tendencies, but often end up with a high frequency of 
withdrawals. There are some others who are reluctant to use net banking 
or mobile banking facilities and depend on ATMs for checking account 
balance. If you happen to […]
ATM Transactions
Many people have a habit of withdrawing small amounts of money from the ATM 
to curb spending tendencies, but often end up with a high frequency of 
withdrawals. There are some others who are reluctant to use net banking 
or mobile banking facilities and depend on ATMs for checking account 
balance. If you happen to fall into any of these categories, it’s time 
to change your habit for good as RBI has issued new rules and guidelines 
limiting the number of times you use your ATM in a month. The new ATM 
transaction rules issued by the Reserve Bank of India is applicable to 
all ATM transactions including withdrawing cash, checking account 
balance or getting a mini account statement.
New RBI ATM Transaction Rules: 
According to the new RBI guidelines that come into effect from 1st November 
2014, savings bank account holders in metropolitan cities 
would be allowed only three transactions from ATMs of other banks and 
five from the same bank in a month. For any ATM transaction above the 
stipulated limit, a transaction fee of Rs. 20 would be charged to the 
account holder. The new transaction fee is applicable only for people 
living in six metropolitan cities including Mumbai, Delhi, Bengaluru, 
Chennai, Hyderabad and Kolkata. People living in smaller towns and other 
centers would continue to enjoy five free monthly transactions per 
month from the ATM of other banks and the charges for them include Rs. 
20 for each cash withdrawal and Rs 9 for non-cash transactions. Account 
holders of zero balance and other no-frills accounts in non metros are 
exempted from such transaction charges as of now.
What new Rules Mean for Bank Customers: 
The transaction fee has been increased from the earlier limit of Rs. 15 and the 
number of free transactions decreased from five to three for ATMs 
of other banks. Another important change in the new RBI guideline policy for 
ATM transaction fee is the fact that all ATM transactions including cash 
withdrawal, balance enquiry and changing of PIN number etc would 
be considered as an ATM transaction unlike in the past when balance 
enquiry was not considered a transaction as such!
A Case for Capping ATM Transaction Limit: 
While capping the charges for ATM usage may be an unpopular decision taken by 
the Reserve Bank of India, the limit in free transactions is justified 
by the apex body considering high expenses for managing ATMs across the 
country. With an increasing number of robbery attempts on various ATMs 
especially in isolated areas and in semi urban and rural areas, the 
banks have been forced to shell out funds to install a security 
mechanism apart from using CCTVs and manual security guards wherever 
possible.
With the Reserve Bank of India laying down strict 
security guidelines not to leave any ATM unmanned or without security 
cameras and other measures, banks are facing higher overheads to manage 
the ATMs.
The inter banking fee charged by various banks through 
ATM services will also increase since banks are using the fee as an 
incentive to install more number of ATM machines. While all the above 
reasons have played their role in the decision to some extent the game 
clincher has been Reserve Bank of India’s long term plan to promote the 
use of e-transfers and cashless transactions as much as possible to 
avoid the use of any black money in the system. The rise in ATM 
transaction fee is largely seen by financial experts as a sum 
culmination of all of the above factors.
Tips to bypass ATM Usage Limit: 
Since the new RBI rules on ATM transaction limits are likely to affect a vast 
majority of people, here are some tips individual account holders can 
use to avoid the fee hike.
        * Avoid cash transactions whenever possible:  If you are one of those 
individuals using cash transactions for every 
purchase and other financial transactions, it is time to explore other 
ways. The use of electronic funds transfer, credit and debit cards, 
cheques and demand drafts must be explored for financial transactions 
than using cash all the time.
        * Change the habit of withdrawing smaller amounts:  With an increase in 
the ATM transaction fee make sure you avoid withdrawing small multiple amounts.
        * Visit bank branch for cash withdrawals: If withdrawing large amount 
of cash, you are better off visiting the bank 
branch rather than the ATM. Visiting the bank branch may be slightly 
inconvenient,  but it is a good idea to visit the bank branch to avoid 
the ATM transaction fee. Having said that, if this type of transaction 
happens once in a while, no harm in paying the charge versus waiting for your 
turn at the bank, if that is indeed the case.
        * Use online banking for statement: A lot of people use ATMs for 
checking their account statement or to get a print of recent transactions or 
mini statement.  Since ATM transactions count the number of visits even if it 
was for checking of account 
statement and not cash withdrawal, it is a good idea to use the internet 
banking facility for checking of account statement rather than the ATM 
machine.
A comparison of ATM usage charges: 
For people living in metropolitan cities including Mumbai, Delhi, Bengaluru, 
Chennai, Hyderabad and Kolkata:

Bank
Transaction Type
Transaction Limit
Same Bank •     Cash Withdrawal
•       Balance Enquiry
•       Change of PIN
•       Mini Statement
 5 free transactions per month. Additional transaction will be charged at Rs. 
20 per transaction. 
Different Bank •        Cash Withdrawal
•       Balance Enquiry
•       Change of PIN
•       Mini Statement
 3 free transactions per month. Additional transaction will be charged at Rs. 
20 per transaction. 
For people living in non metropolitan cities, smaller towns and holders of zero 
balance and other no-frills accounts: 

Bank
Transaction Type
Transaction Limit
Same Bank •     Cash Withdrawal
•       Balance Enquiry
•       Change of PIN
•       Mini Statement
 5 free transactions per month.Rs. 20 is applicable for each cash withdrawal 
and Rs 9 for non-cash transactions. 
Different Bank •        Cash Withdrawal
•       Balance Enquiry
•       Change of PIN
•       Mini Statement
 5 free transactions per month. Rs. 20 is applicable for each cash withdrawal 
and Rs 9 fo 

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