If you are one of those people who like to withdraw the minimum possible amount from your ATM machine in order to control you’respending, then my friend mend your ways or get ready to pay hefty transaction fees to the banks involved. Then there are others who either don’t have easy access to the internetor are still unsure of the security of the mobile and internet banking systems of this country. Time to change my friend! The new rules formulated by RBI will cover cash withdrawals, account balance queries and mini account statement facilities.
Let’s read carefully some more about it in order to have complete clarity on it –
1. If you live in Mumbai, Delhi, Bengaluru, Chennai, Hyderabad and Kolkata, then these rules apply to you.
2. The RBI guidelines come in effect from 1st November, 2014 and will be applicable to all savings bank account holders.
3. Account holders will only be allowed three free transactions from ATM’s of other banks.
4. They will be allowed five free transactions per month from their own issuing bank.
5. For any transaction that crosses the allowed limit a flat fee of twenty rupees will be charged to the account holder.
6. Inhabitants of small towns and cities can continue to enjoy the facility of five free transactions from an ATM of another bank.
7. They will be charged rupees twenty for each cash withdrawal and rupees nine for non cash transactions, like before.
8. Accounts with zero balance facility and all no-frills accounts would be exempted from these charges as of now.
9. All transactions like withdrawal of cash, enquires for balance, changing of PIN would now be considered as a transaction.
10. The justification for capping the transaction fee is the high cost of maintenance of ATMs.
11. The banks have long argued with RBI,about their rising costs of proving security to ATMs. Especially those that are located in semi rural and urban areas and those that are prone to robberies due to isolated locations.
12. The banks have committed to installing CCTV cameras and armed guards at all locations. RBI has laid strict guidelines regarding this.
13. The RBI is encouraging the general population to switch to cashless transactions and E-transfers in order to curb the menace of black money in this country.
14. RBI has set the higher limit at 20 rupees, but the banks are free to fix their own charges.
15. Be smart and use your credit and debit card wherever possible.
16. But beware that some establishments charge a 1%fee on the total amount and you also might get in the habit of splurging.
17. When planning your expenditure be smart and keep a buffer for three to four days. Plan for the next ten days when making a withdrawal.
18. Identify the ATMs of your bank in the region and make it a point to go to them for a transaction.
19. Always keep stash for a rainy day. Keep an optimum amount that will suffice in an emergency and be enough to get you through the month.
20. Start using the debit card and revive your dormant account. Banks charge an annual fee of almost hundred rupees for a basic debit card. A single card allows you 36 transactions in another banks ATM’s and 60 in your own bank. Be one step ahead and don’t give your bank any chance to charge you a fee.