RBI to consider limiting free ATM transactions
The Reserve Bank will consider reducing the
number of free ATM withdrawals, as recommended by the Indian Banks�
Association, in an effort to cut down on cash transactions in the economy.
�We will examine that
(IBA recommendation of cutting down number of free ATM transaction to 5 per
month). Many other proposals have come. The whole idea is that people are using
too much of cash and adding to the costs. We will examine all those issues,� RBI
Deputy Governor, H.R. Khan.
The RBI has been taking
measures to cut down on cash transactions in the economy in a bid to minimize
the risk of money laundering in the system.
IBA recently recommended
a change to include all the ATM transactions, including the own-bank ones, to 5
per month in view of rise in costs due to additional security measures being
put in place following the Bangalore incident wherein a person was brutally
attacked at the ATM.
