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Monday, September 28, 2009

RBI Roll-Backs FREE ATM Withdrawal Transactions

In April, RBI had launched a mandate to enable FREE ATM Transactions to all customers across all ATMs. This was a very customer centric move wherein all customers (irrespective of bank) could do a cash withdrawal from any ATM free of cost.

As per the new policy to be made effective starting 15th October, this will be available to Savings Account customers for the first five transactions in a calendar month and for Current Account customers there will be no FREE Transactions at all. However the Banks may continue to offer additional FREE transactions basis the Average Balances maintained – so you will need to check with your bank for how many transactions you have FREE.

How do you know if it impacts you?

(1) If you do not do more than 5 ATM withdrawal transactions from other Bank ATMs in a calendar month then your life does not change
(2) If you do more than 5 ATM Transactions, then you need to call and check with your bank how many transactions you have FREE basis the balances you maintain
(3) Current Accounts Customers will also need to contact the bank and check how many transactions they have FREE
(4) Now at other Bank ATMs you can do a transaction of at max Rs.10000 as a per transaction limit

It is disappointing that RBI has withdrawn this mandate, however in my opinion 95% of the retail customers will not be impacted as I do not think they do more than 5 transactions from other bank ATMs, however RBI should focus on making this policy easy to understand and this rollback is going to complicate understanding from a customer point of view.

For other useful Personal Banking tips do go to www.simplybank.blogspot.com or you can mail me at Ask.Pranav@Gmail.Com and I will try to respond to your queries at the earliest.

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