When Reserve Bank of India (RBI) announced in April 2009 that all Indian banks ATMs should allow money withdrawals to other banks’ account holders totally free it came as a mind blowing offer to all ATM card holders. They were enabled to withdraw money by a HDFC Debit Card using a SBI or ICICI ATM. No more they were worried about finding own Bank’s ATM as they can use other bank’s ATMs at no extra cost and limit.
It was really a boon from the customer’s perspective. It has been observed that average range of withdrawal from ATM counters is between Rs 3,500 to 4,000 and 90% of the withdrawals are below Rs 10,000.
So, some actions from RBI were called upon to protect the interest of the banks with vast network for its own customer’s benefit and service and the interest of the general and common customers.
Other Bank ATM Withdrawal Limit India
The banks have put own cash withdrawal limit for own customers. This limit for cash withdrawal for own ATM card is set by the issuing bank while issuing the card. This limit for each type of card is displayed at its own ATM locations.
As per the directions of the Reserve Bank of India, for cash withdrawals at other bank ATMs, banks have agreed to maintain one time withdrawal limit of Rs 10,000 in each transaction. This information should be displayed at all ATM location.
RBI made “Free ATM access policy” back in April 01, 2009, no charges were payable for using an ATM other than own bank for balance enquiry and cash withdrawal. But from July 1, 2011, banks have been empowered to limit the free transactions to a maximum of 5 per month. If number of transactions exceeds this number, banks can charge a maximum of Rs 20 per transaction.
So, with the new rule, the privileged customers of a bank will remain privileged and at the same time, common man is also benefited from this scheme as he can draw his money during an emergency other than searching his own bank’s ATM.
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