The Delhi High Court has dismissed a Public Interest Litigation (PIL) filed for uplifting the cap on free-of-charge withdrawals by banking customers from own bank ATMs. The High Court bench dismissed the petition on the ground that the Banks have a lot of overhead costs like the power consumption and salary of the guards etc. to operate ATM facilities making the provision of unlimited free ATM transactions not feasible.
According to the Reserve Bank of India's new guidelines, a bank customer is allowed to withdraw money free of charge only five times a month from the ATM of the respective bank in six metro cities including Delhi, Mumbai, Chennai, Kolkata, Hyderabad, and Bengaluru. Upon any subsequent transaction Rs. 20 would be charged.
The PIL claimed that the guidelines issued by the RBI were introduced at the request of a few banks and Indian Banks Association which approached the RBI pleading changes in the unlimited free-transactions. The move of the RBI was alleged to be “ highly arbitrary and unjustified” while being “ discriminatory and against good practices” by the petitioner.
It was further stated in the petition that most modern economies of the world do not have a cap on the number of transactions that a person is allowed to make on own bank ATM and the unlimited transactions remain free of cost.
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