Early Times Report
Srinagar, Dec 30: J&K Bank has relaxed the charges on ATM transaction for its customers. The bank in a breather to its customers, has decided to provide 15 free transactions (financial and non-financial) per month for its customers. Beyond that, a charge of Rs.20 (inclusive of taxes) per financial transaction and Rs. 10 (inclusive of taxes) per non-financial transaction shall be levied for use of OWN-bank ATMs at all locations with effect from 2015. Banking consumers have to pay more if they are prolific with ATM transactions after State Bank of India (SBI) and its private sector peers HDFC Bank and Axis Bank have capped the free usage in six metros at three. Notably, the Reserve Bank of India (RBI) has allowed the banks to charge card usage for own-bank ATMs to minimum five free transactions per month.
Similarly, in case of Domestic Transactions at other banks' ATMs (Both NFS and MasterCard ATMs), Bank will provide 5 free transactions in a month at all locations (Metro/ Non- Metro) to its Saving Bank account holders. However, from 6th transaction onwards usage charges of Rs.20 per transaction (inclusive of taxes) for cash transactions and Rs.10 (inclusive of taxes) per transaction for non-financial transaction.
Likewise, apart from free balance inquiry facility, all the financial as well as non-financial transactions of the Current Account holders would be charged @ Rs.20/- per transaction.
However, only five ATM transactions, both OFF-US as well as ON-US (inclusive of financial and non-financial transactions) per month free of charge are allowed to small/no frills/basic savings bank deposit accounts. The capping and additional fees on excess usage had been put to effect after a circular by the Reserve Bank of India allowing banks to limit the number of free ATM transactions to five - three in the largest six cities and two elsewhere - a month.
Under the new norms, which have been accepted by the RBI, a customer can make three free ATM transactions in the six largest cities at own-bank machines and two elsewhere.
The new limits and rates by SBI, HDFC Bank and Axis Bank will be applicable to transactions done in Mumbai, New Delhi, Chennai, Kolkata, Bangalore and Hyderabad.
SBI, which had reported a loss of nearly Rs 400 crore by way of paying other banks as interbank ATM usage in FY14, was first to cap free ATM transactions at three and impose fees of Rs 20 per subsequent transaction. Since November 1, the new norms are effective at India's largest lender, SBI.
However, the bank has allowed more free ATM transactions to those who avoid visiting its branches, and unlimited transactions for those with large balances. |
