ATM security cost: Banks may allow only 5 transactions free a month

Ever since the brutal attack on a banker at a Bangalore ATM late last year, state governments have been asking banks to step up security at their kiosks and customers are likely to pay for the extra security they get.

An article in the_Times of India_ today states the Indian Banks’ Association (IBA) has suggested to the RBI the number of free ATM transactions should be limited to 5 per account holder.The IBA is also advocating that the rate paid by banks when their customers use third-party ATMs be raised from Rs 15 to Rs 18. Reports also suggest that banks are keen to pass on such operational costs to customers for withdrawals after the fifth transaction.

[caption id=“attachment_1320167” align=“alignleft” width=“380”]  Representational image of an ATM. AFP[/caption]

The current rule allows account holders unlimited visits to their own banks and 5 free visits to ATMs run by other banks, subject to a maximum withdrawal of Rs 10,000. Customers pay Rs 20 per withdrawal for every transaction after the fifth one.

More from Business

Hyundai India’s Rs 27,870 crore IPO oversubscribed by 2.28X, largely driven by institutional investors How Indian fintech startups are driving Malaysia’s UPI-like digital payments revolution

“…Five free transactions are enough to meet the withdrawal requirements of most of the account holders,” M Tanksale, CEO of the IBA, is quoted as saying in the report.Balance enquiries can be answered via SMSs, he adds.

The National Payments Commission of India (NPCI) is scheduled to meet on 15 January to study the financial effects of the new security measures. The meeting will also be attended by representatives of 14 banks who together comprise the National Financial Switch, which is the IT system that connects the ATM network of the country.

Read the entire_Times of India_ article here.