Reserve Bank of India reduces free ATM withdrawals to 3 in metros

The Reserve Bank of India (RBI) has reduced the number of free monthly transactions from automated teller machines (ATMs) of other banks to three from five in the metros.

The Central bank has also allowed banks to levy ATM charges beyond five transactions (both financial and non-financial) for their own account holders.

A customer will be required to pay a fees of up to Rs 20 for using ATMs beyond the permitted number of free transactions in Delhi, Mumbai, Chennai, Bangalore, Kolkata and Hyderabad. The new guidelines will come into effect from November 1.

The reduction in the number of transactions will, however, not be applicable to customers having basic or small savings bank accounts.

The cut in the free use of ATMs has been allowed "as the number of such machines has increased to 160,000 by Marchend from 27,000 seven years earlier", RBI said in a statement on Thursday.