Delhi High Court Questions RBI’s Move To Limit Withdrawal From ATMs

The Delhi High Court has questioned Reserve Bank of India’s (RBI) move to limit withdrawal from ATMs. The court even said that the account holders were being “unnecessarily taxed.”

According to new norms issued by RBI, bank account holders in Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalore can withdraw money without any charge only five times a month and they will be charged Rs 20 per transaction from the sixth time.

A division Bench of Chief Justice G Rohini and Justice PS Teji issued notice to RBI, Indian Banks’ Association (IBA) and State Bank of India (SBI). The next hearing in the case will take placed on February 18, 2015.

“Why are you unnecessarily taxing your own account holders? File your response by next date of hearing,” the Bench said.

Advocate Swati Aggarwal had filed a public interest litigation, asking the court to direct RBI to allow unlimited number of transaction.

According to the plea, “the guidelines came into force from November 1 and have already been implemented by several banks, including SBI.”