RBI makes ATM services free from April 2009
10 Mar 2008
Mumbai: The Reserve Bank of India has directed banks to permit customers free use of automated teller machines (ATMs) for all transactions from 1 April 2009. The RBI also directed banks to limit charges for using ATMs of other banks to Rs20 per transaction from March 31, this year.
Banks will have the freedom to fix the service charge on cash withdrawal using credit cards and from ATMs located overseas.
RBI has, however, asked them to cap charges at the rates prevailing as on 23 December 2007, and to reduce all charges to a maximum of Rs20 per transaction against prevailing charges of up to Rs55.
For checking account balances, customers can walk into any bank ATM and do it free of cost, the RBI said in a notification.
The central bank, in a draft circular on ATMs, had proposed that customers should be able to access any ATM installed in the country free of charge through an equitable cooperative initiative among banks.
The RBI had rejected banks' plea to cap the number of free cash withdrawals every month saying that such a cap was not desirable and not practical.
As of 31 December 2007, India had 32,342 ATMs deployed across the country. RBI deputy governor V Leeladhar had earlier indicated that commercial banks, which were raking in huge profits, needed to temper the urge to levy a fee on ATM transactions.
