There would be limits to ease of access to any bank’s ATM from Thursday as third-party ATM usage would carry a cap on the withdrawal amount and on the number of transactions each month. From Oct 15th, a maximum of 5 transactions only will be allowed at ATM’s of banks where one is not an account holder with a limit of Rs 10,000 per withdrawal.
The step followed recommendations by Indian Banks’ Association (IBA), an industry lobby. This August, the RBI had asked banks to impose the restrictions on third-party ATM usage from mid-October. IBA had submitted its recommendations to the central bank last July citing financial burden on banks due to a large number of third party usage and small-ticket withdrawals, resulting in high interchange expenses for banks.