The Reserve Bank, which had made transactions free from other bank's ATMs form April this year, has announced that it has fixed third-party ATM withdrawal at Rs 10,000 each time they are used and for only 5 times a customer can make such transactions.

Mr. K Unnikrishnan, Deputy Chief Executive, Indian Banks' Association (IBA), declared that beyond 5 transactions, RBI proposes to impose a transaction fee of Rs 20 for each transaction from third-party ATM. He also added that this decision is expected to be applicable by this October.

It will be optional for banks to impose this fee from customers. It is not compulsory, as RBI may leave it to bank's discernment.

Mr. Unnikrishnan also stated that they shall give decent notice to the clients before applying it, and individual banks can also inform their clients regarding the proposal and whether they would impose fee beyond five transactions or not.