ATM transactions may become fully free under Jan Dhan Yojana

The government is mulling to allow more free ATM transactions, especially under Jan Dhan Yojana for financial inclusion.

The government thinks that keeping restrictions in free ATM transactions may hurt the Jan Dhan Yojana, which aims to have at least one bank account in every household of India, especially rural areas.

In this regard, the government and the RBI are in talks. Presently, every ATM card holder is restricted to three free transactions from other bank’s ATM and in some places five.

ATM transactions by savings bank account holders can also be restricted at their own banks to a certain number, beyond which they can be charged fees of Rs 20 per use.

(Image: Indiatimes)