Banks planning to restrict the free ATM transactions to 5 per month

Banking sector has witnessed vast development over years. There are number of areas in the routine life of the common man that are touched by the banking services.

Online PR News – 09-January-2014 – Hyderabad – If you like to visit the air-conditioned bank ATMs just like that to inquire balance, withdraw cash or get that mini statement then beware as banks are planning to restrict the free transactions for ATM to 5 per month. The use of ATM is mainly intended by the customers to withdraw cash, inquire balance, transfer funds or get the mini statement. Operating that easily accessible machine anytime anywhere is fun but banks have now requested RBI to limit these transactions to check the misuse of the facility.

Till now ATM usage was free and the customers could use their bank’s ATM any number of time without paying any charges. The transactions on other bank’s ATM are already chargeable up to Rs.20. This is because the bank has to pay certain charges to the other bank when its customers use the ATM facility from other bank. The number of ATMs per locality has also increased a lot and people tend to use any available ATM which causes imbalance with respect to the customer base and footfall per ATM. SBI, that has largest customer base in India but still the footfall per ATM is not proportionately good as the customers use any available ATM if the transactions are free.

The ATM running cost has also gone up substantially with the RBI directive of having armed guard as well as CCTV installed at each ATM. The banks expect expense hike of up to Rs.40,000 per ATM due to these mandatory requirements. All these reasons have alarmed the bank officials to cover up the ATM running cost from the customers.

The 5 free transactions per month will also include all non-cash transactions like balance inquiry, min statement etc and cash transactions as well. So, if you are amongst those who visit ATM just for fun then change your habit now as it would now cost you money.

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