10K Cap on Third-Party ATM Withdrawal

by CXOtoday Staff    Aug 21, 2009

The Reserve Bank (RBI) has fixed third-party ATM withdrawal at Rs 10,000 each time they are used and the number of such transactions to five a month.

RBI, which had made third-party ATM transactions free from April this year, has informed the Indian Banks’ Association (IBA) in a communication. This decision is expected to be implemented shortly.

IBA, which is the industry lobby of Indian banks, had submitted its recommendations to the central bank last month citing the financial burden faced by banks on account of huge number of third-party usage and small-ticket withdrawals.