New ATM usage regime kicks in today

Banks could face issues when they usher in, with effect from November 1, the new restricted free monthly ATM usage regime in the six metros.

Flagging the issues, a senior public sector bank official said there is confusion as to whether a customer using other bank’s ATM in a metropolitan centre twice and once at an urban/ semi-urban/ rural location will get two more free transactions at a non-metro centre during the month.

Then there is uncertainty as to whether the areas abutting the metropolitan centres will be included within the jurisdiction of the latter for determining the number of free ATM transactions at other bank ATMs.

“Though banks have suitably modified their respective ATM switches and core banking platforms to track the number of transactions initiated by a customer, place of origin of the transaction (metro/ urban/ semi-urban/ rural), and the category of transaction (such as no-frills account/ savings bank account), there could be initial hiccups before the system stabilises,” said the official. With effect from November 1, the number of mandatory free ATM transactions for savings bank account customers at other banks’ ATMs stands reduced to three transactions (against five earlier) per month (inclusive of both financial and non-financial transactions) for transactions done at the ATMs located in the metro centres.

The metro centres are: Mumbai, New Delhi, Chennai, Kolkata, Bangalore and Hyderabad. This reduction, however, does not apply to small/no-frills/basic savings bank deposit account-holders who will continue to enjoy five free transactions, as hitherto.

At other locations — other than the six metros — the present facility of five free transactions for savings bank account customers remains unchanged.

Under the new limited free ATM usage regime, SBI customers, who maintain balance of up to ₹1 lakh in their savings bank, can transact at other bank ATMs free of cost thrice a month in metros or five times a month in non-metros.

Beyond this limit, SBI customers will be charged ₹20 per financial transaction and ₹8 per non-financial transaction.

However, SBI customers, who maintain balance of over ₹1 lakh, can transact unlimited number of times at other bank ATMs.

A senior Bank of Baroda (BoB) official said his bank customers can transact any number of times at BoB ATMs. However, the RBI imposed restrictions will prevail in case BoB customers transact at other bank ATMs.

“We plan to paste information on the walls of our ATM kiosks about the nearest BoB ATMs. This will be helpful in case the ATM at the kiosk they visit does not function.

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