The Madras High Court Bench ordered notices to RBI and IBA challenging levy of charges for using ATMs

The Madras High Court Bench ordered notices to Reserve Bank of India and Indi­an Banks Asso­ci­a­tion on a pub­lic inter­est lit­i­ga­tion peti­tion chal­leng­ing levy of charges on sav­ings bank account hold­ers in six met­ro­pol­i­tan cities for using ATMs, belong­ing to banks oth­er than those in which they hold an account, more than three times in a month.

The RBI issued a cir­cu­lar on August 14 to the heads of all banks regard­ing mod­i­fi­ca­tion of  its 2011 instruc­tions which direct­ed banks to per­mit their cus­tomers to make five free trans­ac­tions every month in ATMs estab­lished and man­aged by oth­er banks. It also said SB account hold­ers would be enti­tled to three free trans­ac­tions in ATMs locat­ed in metro cities and two more in non-met­ros if they hap­pened to use their ATM cards in both places.