Highlights:
- A new rule on money withdrawing from the ATM
- If a customer withdraws an amount over Rs 5,000, an additional charge will be levied
- The rules will not be applicable on the free monthly withdrawals on ATMs
New ATM Transaction Rules: If you are planning on withdrawing large sums from an Automated Teller Machine (ATM) of more than Rs 5,000 you may want to do it as soon as possible as soon these transactions will come with additional charges. The Reserve Bank of India is preparing to make changes to the ATM withdrawal rules after 8 years.
Having said this, the new rule will not be applicable on the 5 free ATM withdrawals customers get each month. The customer will have to pay separately, which will apply to his/ her withdrawal when they withdraw more than Rs 5000.
A charge of Rs 24 will be levied on withdrawals of more than Rs 5,000.
As per reports, the customer will have to pay a fee of Rs 24 on making withdrawals of over Rs 5,000 from the ATMs. According to the existing cash withdrawal rules on the ATMs, any cash withdrawals can be made for free up to 5 times in a month. Upon withdrawing cash for the sixth time or more from an ATM in a month, a fee of Rs 20 is to be paid on every withdrawal.
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The new rules for withdrawing of cash from the ATMs are being changed based on the recommendations made by the committee of the Reserve Bank of India (RBI). However, the committee’s report has not been made public as of now.
This information is given in the information sought under the Right to Information Act (RTI). The report was submitted to RBI only in October of 2019.
The committee which was constituted to review the ATM fee of RBI submitted its recommendations and based on this, the banks can change the ATM fee after eight years. As per the information given in the RTI, the Reserve Bank committee had suggested reducing cash withdrawals.
The RBI committee was headed by V G Kannan, the Chief Executive Officer (CEO) of the Indian Banks’ Association, and has submitted its report to ease the cash withdrawal habit. He submitted this report to the Reserve Bank on the 22nd of October 2019.
However, the report was never made public. RTI activist Shrikant L had sought information in this regard from RBI through RTI.
