For those coming under Direct Benefit Transfer Scheme of the government, the Bank of Baroda and Bank of India have limited transactions in micro-ATMs of other banks
New Delhi: Bank of Baroda (BoB) and State Bank of India (SBI) have capped the withdrawal limits at micro-ATM terminals of other banks.
According to new rules, BoB has limited its withdrawals from micro-ATM terminals of other banks to four and SBI has limited it to just one.
This rule applies to those who come under government’s direct benefit transfer scheme. The withdrawals have been limited to stop middlemen meddling with the commission money.
Most of the time in rural areas, shopkeepers and agents visit the banks or ATMs to withdraw the money on behalf of the beneficiaries of direct benefit transfer scheme. As they get commissions they do not withdraw a large amount, instead they repeatedly withdraw it in small sums as they can claim commission.
Reports claim that BoB pays 0.5% of the transaction amount, or Rs 15, whichever is lower, when a customer uses a micro-ATM of any other bank. Retailers or agents get a share of this amount.
To stop this practice, the banks have now limited the transactions of BoB and SBI.
This rule does not apply to those who not under the direct benefit transfer scheme. The free limit at other banks' ATMs are three transactions in metro cities and 5 transactions in other cities and towns.
The new rules also state that SBI will allow 8-10 free ATM transactions in a month for its customers with average monthly balance (AMB) of up to Rs 25,000 in their savings accounts. For those with AMB above Rs 25,000, there is a provision of unlimited transactions at SBI ATMs.
In addition, for those who are not under any government scheme, cash deposits in SBI savings account in a bank branch will be free for up to 3 transactions in a month and 36 in a year. The SBI account holder will be charged Rs 50 plus GST for every transaction after that.
Read Exclusive COVID-19 Coronavirus News updates, at MyNation.
Last Updated 3, Oct 2019, 6:26 PM