The Delhi High Court questioned RBI's decision to put a cap on withdrawals by banking customers using their ATM cards, saying account holders were being "unnecessarily taxed".
The Reserve Bank of India (RBI) on Wednesday told the Delhi High Court that limiting the number of cash withdrawals by banking customers using their ATM cards without being charged, is a policy decision taken in public interest, according to a media report.
The RBI also informed the bench of Chief Justice Rohini and Justice Rajiv Sahai that the ATM facility was made available with a view to reduce "cash usage and increase electronic transactions in the country".
A public interest litigation (PIL) filed by advocate Swati Aggarwal, seeking directions to allow banking customers to make an unlimited number of transactions free of any charge on their own bank ATMs.
The central bank opposed the PIL saying the petition is not maintainable, as RBI has "not violated any laws of the land".
RBI reply came after the court questioned it's decision to put a cap on withdrawals by banking customers using their ATM cards, saying account holders were being "unnecessarily taxed".
According to RBI's new guidelines, bank customers in six metros -- Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore -- are allowed to withdraw money free of charge only five times a month and every transaction beyond this limit will be charged Rs 20 per use
The RBI also informed the bench of Chief Justice Rohini and Justice Rajiv Sahai that the ATM facility was made available with a view to reduce "cash usage and increase electronic transactions in the country".
A public interest litigation (PIL) filed by advocate Swati Aggarwal, seeking directions to allow banking customers to make an unlimited number of transactions free of any charge on their own bank ATMs.
The central bank opposed the PIL saying the petition is not maintainable, as RBI has "not violated any laws of the land".
RBI reply came after the court questioned it's decision to put a cap on withdrawals by banking customers using their ATM cards, saying account holders were being "unnecessarily taxed".
According to RBI's new guidelines, bank customers in six metros -- Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore -- are allowed to withdraw money free of charge only five times a month and every transaction beyond this limit will be charged Rs 20 per use
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