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Govt may soon cut free ATM withdrawals to just three: Report

The government is weighing in on a proposal to reduce the free withdrawals from ATMs to just three, an Economic Times report said.

BT Online        Last Updated: May 3, 2018  | 18:21 IST
Govt may soon cut free ATM withdrawals to just three: Report

The government is weighing in on a proposal to reduce the free withdrawals from ATMs to just three, a report in The Economic Times said.

The report said that this was proposed by bankers in the pre-budget consultations with the finance ministry.

"A proposal to bring down free ATM transactions to three per month has been discussed with the finance ministry, and this is one of the measures being considered to disincentivise use of cash," the report quoted a senior banker.

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Most banks allow up to five free ATM transactions monthly to their own customers. Once the limit is exhausted, a charge of Rs 20 per transaction is levied. If you are using your ATM card at another bank's ATM machine, only three free transactions are allowed in the metro cities like Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad - and five free transactions in the remaining cities.

Earlier, Niti Aayog CEO Amitabh Kant had said cards, ATMs and point-of-sale (POS) machines would become redundant in the country by 2020.

"By 2020 my view is that in the next two-and-a-half years, India will make all its debit cards, credit cards, all ATM machines all POS machines totally irrelevant," Kant had said.

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