Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
1-min read

SBI, Bank of Baroda Limit Cash Withdrawals from Micro-ATMs of Other Banks: Report

Bank of Baroda has modified its rules to allow customers to just do four transactions a month in case he/she uses the micro-ATM terminal of another bank, while SBI has limited it to just one.

Trending Desk

Updated:October 3, 2019, 1:04 PM IST
facebookTwitterskypewhatsapp
SBI, Bank of Baroda Limit Cash Withdrawals from Micro-ATMs of Other Banks: Report
State Bank of India. (File photo)

In a move that would majorly impact banking services in rural areas, State Bank of India (SBI) and Bank of Baroda (BoB) have limited the number of cash withdrawals for customers using micro-ATMs of other banks to just up to four times a month, according to a report in Economic Times.

Micro ATMs are the handheld point of sale terminals used to disburse cash in remote locations where bank branches cannot reach. Through micro-ATMs, banks can remotely connect to their core banking system and help customers undertake basic financial transactions. The banking correspondents handling micro ATMs are usually local agents and shopkeepers, while customers in rural areas mainly avail this service to access the cash subsidy they receive from the government into their ‘direct benefit transfer’ accounts.

Now, Bank of Baroda has modified its rules to allow customers to just do four transactions a month in case he/she uses the micro-ATM terminal of another bank, while SBI has limited it to just one. However, SBI account holders who are not part of the government’s direct benefit transfer scheme are allowed to do five such transactions a month, according to the report.

A Bank of Baroda spokesperson cited the malpractice of acquirer banks’ agents indulging in split transactions to earn more commissions as one of the reasons behind the move.

“We found that many of our customers were splitting one big cash-out into multiple small ones,” a senior banker told Economic Times. “While the customer does not get any benefit through such acts, retailers make extra money since their commissions are based on the number of transactions.”

As per the norms, if BoB customer uses a micro-ATM of any other bank, then BoB pays 0.5% of the transaction amount, or Rs 15, whichever is lower, to that bank. Retailers or agents get a share of this amount.

The move by the banks is likely to cause a significant drop in transactions undertaken through the Aadhaar-enabled Payment System (AePS) going ahead. According to the report, AePS transactions in September have already fallen nearly 9% September to 201 million from the 220 million seen in July, as per data by the National Payments Corporation of India, which manages the payment network.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Read full article
Next Story
Next Story

Also Watch

facebookTwitterskypewhatsapp
Most Active
Company Price Change %Gain
Yes Bank 51.40 8.44
Reliance 1,416.35 1.42
Indiabulls Hsg 231.20 16.80
Zee Entertain 250.20 -5.39
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
HDFC AMC 2,882.20 6.11
Yes Bank 51.40 8.44
Indiabulls Hsg 231.50 17.42
Reliance 1,415.30 1.37
IRCTC 779.20 7.57
Top Gainers
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.28
Adani Ports 421.70 3.07
Grasim 746.50 3.03
Maruti Suzuki 7,302.30 2.50
Company Price Change %Gain
Yes Bank 51.40 8.44
Coal India 205.95 3.31
Maruti Suzuki 7,318.15 2.74
Power Grid Corp 202.55 2.45
NTPC 121.00 2.02
Top Losers
Company Price Change %Gain
Zee Entertain 250.20 -5.39
Tata Motors 136.85 -1.90
Eicher Motors 20,275.90 -1.05
Bajaj Auto 3,087.05 -0.79
Hindalco 187.40 -0.74
Company Price Change %Gain
Tata Motors 136.70 -1.05
Bajaj Auto 3,087.75 -0.73
Bharti Airtel 383.25 -0.65
ICICI Bank 437.75 -0.64
Axis Bank 709.20 -0.19

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results