The Reserve Bank of India (RBI) has received proposal from the Indian Banks Association (IBA) to limit free transactions through Automated Teller Machines (ATMs) for both their own and other banks customers. The RBI has informed that IBA had requested to withdraw the existing policy of five free transactions at another bank's ATMs at the Centres which have more than ten lakh population as per 2011 census. Based on IBA's request, RBI had issued revised guidelines dated 14th August, 2014 on rationalization of ATM transactions. As per the revised guidelines, the number of mandated free transactions for savings bank account holders at other bank ATMs has been reduced from five to three per month w.e.f. November 01, 2014. This will apply for transactions done at ATMs located in six metro centres only, namely Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad. Banks are also free to offer free transactions above the mandated limit of free transactions per month.
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