Lok Sabha Question No. 1924 (UNSTARRED), answered on 2018-12-21
Subject: Restrictions on ATM Transactions
Ministry: FINANCE
Asked by: Adhikari Dibyendu

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SER VICES

## LOK SABHA UNSTARRED QUESTION No. 1924

TO BE ANSWERED ON TUESDAY, DECEMBER 2/,2018/AGRAHA YANA 30,1940 (SAKA)

## Restrictions on ATM Transactions

## 1924. SHRI DIBYENDU ADHIKARI:

Will the Minister of FINANCE be pleased t0 state:

- (a) whether the Government levied charges on bank deposits for non- maintenance of minimum balances in their accounts and restricted number of Automated Teller Machine (ATM) transactions and withdrawal limits, if the details thereof and the reasons therefor;
- (b) the amount of charges on below minimum balance and over ATM transactions by the Public Sector Banks during the last three financial years; and
- (c) whether the Government proposes to withdraw 50 per cent of total ATM services in the country by March; 2019 and if so, the reasons therefor?

## Answer

## The Minister Of State in the Ministry of Finance (SHRI SHIV PRATAP SHUKLA)

- Following Reserve Bank of India (RBI) guidelines, banks provide basic banking services through Basic Savings Bank Deposit (BSBD) accounts, including accounts opened under Pradhan Mantri  Jan Dhan Yojana (PMJDY) without any charges. Following basic minimum services are also available to BSBD account holders including PMJDY account holders free of cost:
- Deposit, monthly maximum 4 withdrawals including ATM withdrawals, receipt/credit of money through electronic payment channels or by means of collection/deposit of cheques. Also there is no requirement to maintain minimum balance in these accounts.

Reserve Bank of India (RBI) vide its Master Circular on "Customer Service in Banks" dated July 1, 2015, has permitted banks to fix service charges on various services rendered by them; as per their Board approved policy, while ensuring that the charges are reasonable and not out of line with the average cost of providing these services:

Further; as per RBI's direction on of ATMs Rationalization of number of free transactions dated 14.08.2014, a minimum of 3 free transactions at any other bank'$ ATMs at six metro location, viz. Mumbai, New Chennai, Kolkata,  Bengaluru and Hyderabad and a minimum of 5 free ATM transactions at a bank'$ own ATM at any other location is permitted a month: Usage during

Beyond this minimum number of free ATM transactions, banks have their Board approved policy on charges  from customers on ATM transactions, subject to a cap on customers charges of Rs.20 per

- (b) The amount of of charges by Public Sector Banks for non maintenance of minimum balance and additional number of ATM transactions beyond the permitted free transactions during the last three financial years is provided at Annex-I and Annex-Il respectively: levy '
- (c) As apprised by the Public Sector Banks (PSBs), do not have any plan to shut down their ATMs. they

|                                                                                                                                      |                                                                                                                                            |                                                                                                                                            |                                                                                                                                            | Annexure-|                                                                                                                            |
|--------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
| Annexure-| as referred to in reply to the Lok Sabha question no. 1924 for 21.12.2018 regarding Restrictions on ATM Transactions | Annexure-| as referred to in reply to the Lok Sabha question no. 1924 for 21.12.2018 regarding Restrictions on ATM Transactions       | Annexure-| as referred to in reply to the Lok Sabha question no. 1924 for 21.12.2018 regarding Restrictions on ATM Transactions       | Annexure-| as referred to in reply to the Lok Sabha question no. 1924 for 21.12.2018 regarding Restrictions on ATM Transactions       | Annexure-| as referred to in reply to the Lok Sabha question no. 1924 for 21.12.2018 regarding Restrictions on ATM Transactions       |
| BANK                                                                                                                                 | The amount of charges collected by Public Sector Banks for non-maintenance of minimum balance in Saving Bank accounts (Amount in Rs Crore) | The amount of charges collected by Public Sector Banks for non-maintenance of minimum balance in Saving Bank accounts (Amount in Rs Crore) | The amount of charges collected by Public Sector Banks for non-maintenance of minimum balance in Saving Bank accounts (Amount in Rs Crore) | The amount of charges collected by Public Sector Banks for non-maintenance of minimum balance in Saving Bank accounts (Amount in Rs Crore) |
|                                                                                                                                      | 2015-16                                                                                                                                    | 2016-17                                                                                                                                    | 2017-18                                                                                                                                    | 2018-19 (Upto September 2018)                                                                                                              |
| Allahabad Bank                                                                                                                       | 26.75                                                                                                                                      | 24,34                                                                                                                                      | 16.16                                                                                                                                      | 7.31                                                                                                                                       |
| Andhra Bank                                                                                                                          | 47.16                                                                                                                                      | 56.85                                                                                                                                      | 56.80                                                                                                                                      | 28.32                                                                                                                                      |
| Bank of Baroda                                                                                                                       | 67.51                                                                                                                                      | 104.94                                                                                                                                     | 88.85                                                                                                                                      | 66.59                                                                                                                                      |
| Bank of India                                                                                                                        | 25.06                                                                                                                                      | 16.44                                                                                                                                      | 17.35                                                                                                                                      | 9.41                                                                                                                                       |
| Bank of Maharashtra                                                                                                                  | 93.18                                                                                                                                      | 50.54                                                                                                                                      | 19.17                                                                                                                                      | 18.34                                                                                                                                      |
| Canara Bank                                                                                                                          | 117.16                                                                                                                                     | 106.58                                                                                                                                     | 91.33                                                                                                                                      | 36.42                                                                                                                                      |
| Central Bank of India                                                                                                                | 55.54                                                                                                                                      | 56.58                                                                                                                                      | 180.93                                                                                                                                     | 55.02                                                                                                                                      |
| Corporation Bank                                                                                                                     | 37.91                                                                                                                                      | 38.91                                                                                                                                      | 25.28                                                                                                                                      | 11.91                                                                                                                                      |
| Dena Bank                                                                                                                            | 11.84                                                                                                                                      | 14.15                                                                                                                                      | 18.25                                                                                                                                      | 4.53                                                                                                                                       |
| IDBI Bank Ltd.                                                                                                                       | 85.27                                                                                                                                      | 106.65                                                                                                                                     | 80.95                                                                                                                                      | 24.59                                                                                                                                      |
| Indian Overseas Bank                                                                                                                 | 54.25                                                                                                                                      | 77.57                                                                                                                                      | 41.95                                                                                                                                      | 7.19                                                                                                                                       |
| Indian Bank                                                                                                                          | 27.48                                                                                                                                      | 41.01                                                                                                                                      | 88.38                                                                                                                                      | 74.55                                                                                                                                      |
| Oriental Bank of Commerce                                                                                                            | 21.37                                                                                                                                      | 33.02                                                                                                                                      | 97.55                                                                                                                                      | 37.99                                                                                                                                      |
| Punjab & Sind Bank                                                                                                                   | BANK HAS NO CHARGE                                                                                                                         | BANK HAS NO CHARGE                                                                                                                         | BANK HAS NO CHARGE                                                                                                                         | BANK HAS NO CHARGE                                                                                                                         |
| [Punjab National Bank                                                                                                                | 98.10                                                                                                                                      | 130.64                                                                                                                                     | 151.67                                                                                                                                     | 112.36                                                                                                                                     |
| State Bank of India ##                                                                                                               | NIL                                                                                                                                        | NIL                                                                                                                                        | 2433.87                                                                                                                                    | 459.88                                                                                                                                     |
| Syndicate Bank                                                                                                                       | 39.79                                                                                                                                      | 47.50                                                                                                                                      | 57.54                                                                                                                                      | 21.86                                                                                                                                      |
| UCO Bank                                                                                                                             | 14.55                                                                                                                                      | 3.65                                                                                                                                       | 2.79                                                                                                                                       | 0.58                                                                                                                                       |
| Union Bank of India                                                                                                                  | 11.48                                                                                                                                      | 12.88                                                                                                                                      | 17.17                                                                                                                                      | 9.17                                                                                                                                       |
| United Bank of India                                                                                                                 | 6.41                                                                                                                                       | 3.56                                                                                                                                       | 2.46                                                                                                                                       | 1.01                                                                                                                                       |
| Vijaya Bank                                                                                                                          | 0.60                                                                                                                                       | 0.55                                                                                                                                       | 1.07                                                                                                                                       | 2.12                                                                                                                                       |

Source: Banks

## Note: The monthly average balance requirement was charged by SBI till 2012. Subsequently, SBI stopped charging for the same till 31.3.2016 while other banks, including Private Banks were charging as per their Board-approved policy: It was reintroduced by SBI with effect from 1.4.2017. The minimum balance requirements were subsequently reduced with effect from 1.10.2017. It is also clarified that there is no minimum balance requirement for Basic Savings Bank Deposit Accounts and Jan-Dhan accounts:

| Annexure-Il                                                                                                                      | Annexure-Il                                                                                                                      | Annexure-Il                                                                                                                      | Annexure-Il                                                                                                                      | Annexure-Il                                                                                                                      |
|----------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|
| Annexure-Il as referred to in reply to the Lok Sabha question no: 1924 for 21.12.2018 regarding Restrictions on ATM Transactions | Annexure-Il as referred to in reply to the Lok Sabha question no: 1924 for 21.12.2018 regarding Restrictions on ATM Transactions | Annexure-Il as referred to in reply to the Lok Sabha question no: 1924 for 21.12.2018 regarding Restrictions on ATM Transactions | Annexure-Il as referred to in reply to the Lok Sabha question no: 1924 for 21.12.2018 regarding Restrictions on ATM Transactions | Annexure-Il as referred to in reply to the Lok Sabha question no: 1924 for 21.12.2018 regarding Restrictions on ATM Transactions |
| BANK                                                                                                                             | The amount of charges collected by Public Sector Banks for additional number of ATM transactions beyond the                      | The amount of charges collected by Public Sector Banks for additional number of ATM transactions beyond the                      | The amount of charges collected by Public Sector Banks for additional number of ATM transactions beyond the                      | The amount of charges collected by Public Sector Banks for additional number of ATM transactions beyond the                      |
| BANK                                                                                                                             | 2015-16                                                                                                                          | 2016-17                                                                                                                          | 2017-18                                                                                                                          | 2018-19 (Upto September 2018)                                                                                                    |
| Allahabad Bank                                                                                                                   | 1.58                                                                                                                             | 1.72                                                                                                                             | 2.33                                                                                                                             | 1.24                                                                                                                             |
| Andhra Bank                                                                                                                      | 35.79                                                                                                                            | 34.92                                                                                                                            | 45.93                                                                                                                            | 27.45                                                                                                                            |
| Bank of Baroda                                                                                                                   | 51.34                                                                                                                            | 51.29                                                                                                                            | 52.75                                                                                                                            | 27.07                                                                                                                            |
| Bank of India                                                                                                                    | 103.35                                                                                                                           | 121.94                                                                                                                           | 158.38                                                                                                                           | 80.33                                                                                                                            |
| Bank of Maharashtra                                                                                                              | 17.31                                                                                                                            | 20.75                                                                                                                            | 22.90                                                                                                                            | 15.97                                                                                                                            |
| Canara Bank                                                                                                                      | 0.09                                                                                                                             | 1.37                                                                                                                             | 82.27                                                                                                                            | 63.13                                                                                                                            |
| Central Bank of India                                                                                                            | 38.90                                                                                                                            | 40.52                                                                                                                            | 58.31                                                                                                                            | 35.00                                                                                                                            |
| Corporation Bank                                                                                                                 | 25.23                                                                                                                            | 33.37                                                                                                                            | 31.86                                                                                                                            | 19.13                                                                                                                            |
| Dena Bank                                                                                                                        | 8.38                                                                                                                             | 6.42                                                                                                                             | 13.85                                                                                                                            | 9.44                                                                                                                             |
| IDBI Bank Ltd.                                                                                                                   | 30.98                                                                                                                            | 27.84                                                                                                                            | 37.67                                                                                                                            | 19.66                                                                                                                            |
| Indian Overseas Bank                                                                                                             | 29.01                                                                                                                            | 21.80                                                                                                                            | 28.71                                                                                                                            | 20.07                                                                                                                            |
| Indian Bank                                                                                                                      | 38.51                                                                                                                            | 35.80                                                                                                                            | 43.50                                                                                                                            | 26.50                                                                                                                            |
| Oriental Bank of Commerce                                                                                                        | 15.19                                                                                                                            | 13.27                                                                                                                            | 16.09                                                                                                                            | 8.52                                                                                                                             |
| Punjab & Sind Bank                                                                                                               | 1.19                                                                                                                             | 3.77                                                                                                                             | 4.48                                                                                                                             | 3.01                                                                                                                             |
| Punjab National Bank                                                                                                             | 87.80                                                                                                                            | 80.73                                                                                                                            | 102.80                                                                                                                           | 51.84                                                                                                                            |
| State Bank of India                                                                                                              | 318.00                                                                                                                           | 337.00                                                                                                                           | 539.00                                                                                                                           | 360.00                                                                                                                           |
| Syndicate Bank                                                                                                                   | 26.90                                                                                                                            | 17.07                                                                                                                            | 39.49                                                                                                                            | 23.20                                                                                                                            |
| UCO Bank                                                                                                                         | NIL                                                                                                                              | NIL                                                                                                                              | 6.64                                                                                                                             |                                                                                                                                  |
| Union Bank of India                                                                                                              | 63.51                                                                                                                            | 59.41                                                                                                                            | 76.20                                                                                                                            | 41.89                                                                                                                            |
| United Bank of India                                                                                                             | 10.89                                                                                                                            | 11.06                                                                                                                            | 19.89                                                                                                                            | 11.74                                                                                                                            |
| Vijaya Bank                                                                                                                      | 17.69                                                                                                                            | 18.08                                                                                                                            | 25.24                                                                                                                            | 13.53                                                                                                                            |