Limited Access to Third Party A.T.M. from 15 October,2009

  With the development of digital technology and its control in every sector, life was never relax and easy as it is now, because it has reduce additional burden to using any service and right now thanks to innovation and affordable service provided by banks to its customers from some years, now Automatic Teller Machine (A.T.M.) Card is used by one third of customers of banks, so in the world plastic money takes control of physical money and by far it is very good and safe option to carry money provided user keep on changing his password and never share his password with anyone ,otherwise he can easily trap in the fraud net. Using Automatic Teller Machine (A.T.M.) Cards holder is not depended on the bank’s working hours as he can withdraw money at anytime, anywhere and from any A.T.M. throughout India as in every district these are found in good numbers, no need to stand in long queues plus for a extensive travelers, businessmen and marketing executives it is a very good tool to get money whenever they need using plastic card or A.T.M. cards.
   From 15th October, 2009 new norm going to comes into effect which was directed by Reserve Bank of India (R.B.I.) in the August month to put cap on transactions by a customer from using third party A.T.M. and after October 15 customer can withdraw from other bank A.T.M. not more then Rupees 10,000 and not more then five times in a month and after fifth withdrawal of money he will have to pay service charges. The IBA guidelines suggest that a customer, who has a savings account in any bank, can use a third party ATM for free, five times in a month, after which a nominal amount will be charged. Reason behind this term is that Indian Banks’ Association (I.B.A.) had supplication to the Central Bank for end of this practice or put cap on it in the July month of this year and add it has create financial burden on banks due to a large number of third party usage and small-ticket withdrawals, resulting in high interchange expenses for banks, so Reserve Bank of India (RBI)in August had asked banks to impose the restrictions on third-party ATM usage from mid-October. It is worth mentioning here that withdrawing money from any A.T.M. was almost six months back on 1st April, 2009 started, before this customer can withdraw from third party A.T.M. after shedding 50 Rupees as service charges. Reserve Bank of India felt that use of free ATMs will be ideal, banks collecting Rupees 50 as service charges are not fair. Similarly, the use of ATM of other banks confuse the customers about their fees but Indian Bank’s Association (I.B.A.) put its pressure on to the Central bank against third party A.T.M. usage on the ground of financial burden and other reasons to limit the frequency of other banks A.T.M. use or end this practice completely. State Bank of India which have largest numbers of A.T.M. across India have informed other banks customer through press release that as per new guidelines by the Reserve bank of India from 15th October, 2009 onwards only Rupees ten thousand can be withdrawn from their A.T.M.’s and in a month they cant use there A.T.M. for withdrawing money more then five times in a month customer has to pay service charges from sixth transactions onwards. As per information after 1st April, 2009 when free use of other bank norm comes into force the usage of A.T.M. jumps to 20 to 25 percent and withdrawing money of rupees hundred and daily usage of A.T.M. cases’ shoot at once and it effect badly on the banks which have wide spread network of A.T.M. because it put burden on interchange expenses , below are banks four banks which have largest chain of A.T.M. across India-

• State Bank of India-12,000
•  ICICI-4,720
• Axis Bank(formally UTI )-3,636
•  HDFC-3,295

       As per estimate using A.T.M. by customer it cost eighteen to twenty rupees for it’s bank and customer’s bank has to pay the bank from where money is withdrawn, so considering this Indian Bank’s Association also supplication to make it mandatory withdrawal of minimum amount of rupees 1,000 which was not accepted by Central Bank and deny it considering the interest of small customers.
    After 15th October, 2009 A.T.M. cards holder has to change their habit of frequent use of A.T.M. especially if they are using third party A.T.M. then they are entitle for only five free withdrawal in a month plus have to keep in mind that they cannot withdraw more then 10,000 rupees but for limitless and more then 10,000 rupees withdrawal they have to access their bank’s A.T.M.