ATM Charges India

ATM Charges India
Charge on using automated teller machines (ATMs) of other banks will be re-introduced if someone uses this facility more than FIVE times a MONTH.  Also the Reserve Bank of India has said that not more than Rs 10,000 can be withdrawn each time they are used.

"Beyond five transactions, we propose to levy a transaction fee of Rs.20 per transaction for using another bank's ATM," said IBA (Indian Banks Association) deputy chief executive K Unnikrishnan.  The Reserve Bank of India (RBI) has accepted the IBA proposal, but it will be implemented only by October 2009, Unnikrishnan said . "It will be optional on the part of the banks to levy this charge on customers. We have not made it mandatory but left it to their (banks') discretion," Unnikrishnan said.

No of ATMs in India is about 40,000  of which nearly 30,000 are in urban centers and metros. The remaining 10,000 are in semi-urban centers with only a sprinkling in rural areas.

We found that a majority of the ATM transactions were in the range of average withdrawals of Rs.3,500 to Rs. 40000, and 90 percent of all transactions were below Rs.10,000. Hence, the intended purpose to serve the common man was achieved," Unnikrishnan said. However, there was a small minority of users who withdrew very large sums on account of high card limits given by some banks to privileged customers.

Source:Times Of India