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RBI accepted the IBA’s suggestion of “Savings bank customers will be subject to a withdrawal ceiling of Rs 10,000 a transaction at non-home bank ATMs.” They claimed that this decision is based on their research on customer behavior. A study by the Association showed that the average cash withdrawal per transaction from ATMs is Rs 3,500 and that 90 per cent of the transactions were under Rs 10,000.

The following facts should be considered while making any valid conclusion from the above research.

1. Most of the ATMs in India can dispense only 40 notes in one transaction.
2. For the past 4 months, most of the ATMs running out of Rs.500 and Rs.1000 notes and most of the times dispensing only Rs.100 notes (Rs.4000/transaction).
3. If I wish to withdraw the proposed Rs.10000 from the ATM which has only Rs.100 denomination notes, then I need to make 3 transactions.  Then I can make only two more transactions for the rest of the month. It is unfair. In this scenario above research findings become invalid.
4. RBI should not become puppet in the hands of Banks lobby. RBI should make decisions based on their own and Independent research not based on on body which has huge vested interest.