Delhi High Court dismisses PIL against cap on free withdrawals from ATMs

The Delhi High Court has dismissed a PIL against the cap on free-of-charge withdrawals by banking customers from own bank ATMs, saying it was a policy decision.

A bench of Chief Justice Rajendra Menon and Justice V K Rao on Thursday said the ATM facility provided by banks have lot of overhead costs, like salary of guards and power consumption charges, and therefore, there cannot be unlimited free ATM transactions.

"They have to maintain the ATMs and there would be establishment costs," the court said, adding that it would be "disastrous" if banks close the ATMs due to its interference in the issue.

As per the Reserve Bank of India's new guidelines, bank customers in six metros -- Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bengaluru -- are allowed to withdraw money free of charge only five times a month from the ATMs of their banks and will be charged Rs 20 for every subsequent transaction.