RBI – No Move To Limit Free ATM Transactions

Reserve Bank of India is yet to take decisions about limiting the number of free transactions at ATMs. This was proposed by the Indian Bank Association.

 

In a written reply to the Lok Sabha, Minister of State for Finance, Namo Narayan Meena said “The RBI has received a proposal from IBA to limit free transaction on ATMs and also to increase the ATM charges. No decision on the proposal has been taken.”

In November last year following an attack on a woman employee of a public sector bank inside an ATM in Bangalore, the government had directed all banks to beef up security arrangements at the their ATMs.

To ease the banks of rising non-performing assets (NPAs) and improve their asset quality, Meena said, the government has advised public sector banks to take new initiatives to increases the pace of recovery.

The government had asked banks to include appointment of nodal officers for recovery, to conduct special drives for recovery of loss assets and to constitute a board level committee for monitoring of recovery.

To ensure effective and expeditious recovery of defaulted loans of banks and financial institutions, the Enforcement of Security Interest and Recovery of Debt Laws (Amendment) Act 2012 has been enacted, he said.