Upcoming ATM rules - beneficial for common man ? - YP Buzz

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                ATM withdrawals limited to an amount of 5000 and increasing the ATM charges was recommended by the committee appointed in 2019 and the suggestions have been submitted to the central bank but the nation is unknown about its acceptance from the RBI. 

ATM Machine

The Reserve Bank of India earlier in 2019 did appoint a committee to review the interchange charges for all the transactions carried out at the automatic teller machines popularly known as the ATM across the country reported by money life.

The committee suggested levying a charge for an ATM withdrawal amounting above 5000. RTI act made the report accessible to the public as it's not accessible to the general public but a techie named Shrikant filed an appeal under the RTI act.

ATM Machine

The appointed committee did submit the report generated to the Central bank but its acceptance is still not confirmed yet as per money life. The committee recommended an increase of 16 percent in financial and non-financial transactions done at the ATM to be precise an increase from Rs. 2 to Rs.7  for financial transactions and from Rs. to Rs. 7 for a non-financial transaction.

But for transactions in a location where the population is less than one million the committee recommended an increase of around 24 percentage. Considering the transaction per ATM compared to the transaction carried out at the branch is comparatively considering the convenience and hence the cost of an ATM holding at the branch is much more expensive as compared to the cost of holding a separate ATM machine.

Debit Cards

The committee was headed by the chief executives of Indian banks. Currently, a customer holding the SBI card can withdraw up to 10000 at a time and 20000 in a day whereas a customer from various banks has a variety of limits, for example, an ICICI bank cardholder can withdraw up to 50000 to 150000. 
The committee was appointed as no review for charges has been done since 2008 and 2012 for particular segments but the acceptance by RBI is not yet revealed. Earlier when the demonetization was announced people did face an issue for having cash in the pockets, the same situation arose in 2016 when the public had to run for cash through the ATM from one ATM to another. 
The limit was also Rs. 2000 per person and the committee formed by the RBI have posted certain results that indicate the reduction in the number of draws per person per ATM card also they intend to implement changes over the ATM withdrawals. The government has to push in the digital transaction even though the motive for the digital transaction by the government is a very good move still there are some rural areas where the digital transaction is not possible as not many users are onto the online platforms which provide the digital payment solutions. 
ATM happens to be the primary source for the users to get cash on hands, as visiting the bank and getting cash is a very hectic process and the banks are not spread widely as the ATM spread widely all over the locations. Also, the advantage for ATM is that any person from any bank can withdraw the amount he needs at any bank ATM though there is a certain limit to that still at the time of emergency this happens to be a useful source of money.
As the COVID-19 and so-called Corona era many people facing the cash crunch, many also losing out on their jobs so the move taken by the government is kind of not useful or not fruitful for the users. The general view suggests this review be postponed and the suggestions from the committee have to be declined by the RBI and should not be implemented soon as the implementation will definitely affect the local or the common man. 
Also limiting the number of cash withdrawals to Rs. 5000 would be a disaster as  Rs.5000 is the amount which is a nominal one which we require even at a general store and not all general store provides digital payments so cash is the thing which we need and it won't be vanishing soon not everyone can get the to digital platform very soon and because of lockdowns, it becomes more difficult for the members to get over the digital platforms when cash is needed and Rs. 5000 is the amount which is not at all acceptable by the public and hence decision should not be taken by the RBI.

Thanks & Regards, 
YP Buzz

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