MUMBAI: If you thought not being able to withdraw as much as you wanted to from ATMs was painful, here’s some more worry coming your way. The government is considering a proposal to reduce the free withdrawals by more than half to just three, instead of the nearly 8-10 now, including from banks where one has accounts.
This proposal, floated by bankers, was discussed in the pre-budget consultations with the finance ministry, and the feeling was that this is one of the ways to push digital, said people familiar with the matter.
“A proposal to bring down free ATM transactions to three per month has been discussed with the finance ministry, and this is one of the measures being considered to disincentivise use of cash,” a senior banker said on the condition of anonymity.
“Those free transactions were decided during a different era, but things have changed now and we need to change with that,” another private banker said. “If only three free transactions are allowed, then people will be inclined to shift to digital transactions.”
Currently, most banks allow own customers up to five free ATM transactions every month after…