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The Delhi High Court dismissed a Public Interest Litigation that sought permission for unlimited withdrawal of cash by customers from their own bank ATMs. The High Court held that banks are already thrusted with heavy overheads like power consumption, salaries of guards, infrastructure etc. Unlimited transaction would further augment the cost.
The Reserve Bank of India has stringent guidelines regarding this. Accordingly a customer can withdraw money from the ATM for about five times a month without incurring any charges on withdrawal. Upon subsequent withdrawal, a charge of Rs. 20 is imposed. This applies to six metropolitan cities, namely Bangalore Mumbai, Kolkata, Hyderabad, Delhi, Chennai.
The PIL maintained that the move of RBI on the request of few banks and the Indian Banks Association, to put a curb on free transactions is against good conscience and highly arbitrary. To the point of being unjustified, it is also discriminatory. The petition further claimed that most modern economies of the world have no such threshold or cap on transactions and that such charges are normally not applicable, thereby enhancing the freedom of withdrawal.
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