Any Time Money – Customer charges for ATM use – RBI instructions
Automated Teller Machines (ATMs) have gained prominence as a delivery channel for banking transactions in India . Banks have been deploying ATMs to increase their reach. While ATMs facilitate a variety of banking transactions for customers, their main utility has been for cash withdrawal and balance enquiry. As at the end of December 2007, the number of ATMs deployed in India was 32,342. Commensurate with the branch network, larger banks have deployed more ATMs. Most banks prefer to deploy ATMs at locations where they have a large customer base or expect considerable use. To increase the usage of ATMs as a delivery channel, banks have also entered into bilateral or multilateral arrangements with other banks to have inter-bank ATM networks.
It is evident that the charges levied on the customers vary from bank to bank and also vary according to the ATM network that is used for the transaction. Consequently, a customer is not aware, beforehand, of the charges that will be levied for a particular ATM transaction, while using an ATM of another bank. This generally discourages the customer from using the ATMs of other banks. It is, therefore, essential to ensure greater transparency.
Now RBI has directed that service charges would be implemented by all banks as
Sr. No. | Service | Charges |
|---|---|---|
1 | For use of own ATMs for any purpose | Free (with immediate effect) |
2 | For use of other bank ATMs for balance enquiry | Free (with immediate effect) |
3 | For use of other bank ATMs for cash withdrawals | Banks which are charging more than Rs. 20 per transaction shall reduce the charges to a maximum of Rs. 20 per transaction with immediate effect. Free with effect from April 1, 2009 |
RBI's RPCD.CO.RF.BC.No. 69 / 07.06.00 / 2007-08 Dated: May 13, 2008