ATM Use Will Become Free From April 2009, Says RBI
By April 2009, the customers will be capable of withdrawing money from ATM without paying any charge.
The Reserve Bank of India has directed the commercial banks to let customers’ free use of Automated Teller Machines (ATMs) for all transactions from 1 April 2009.
According to an RBI announcement, the customers can also use ATMs of other banks for balance enquiries free of cost.
The RBI has also asked banks to put a limit on the fees charged for using ATMs of other banks to Rs 20 for each transaction from March 31, 2008, and eradicate the same from April 2009.
However, the RBI has given banks the freedom to fix the service charge on cash withdrawal with the use of credit cards and from ATMs located out of the country.
The central bank has also asked banks to lessen all charges from Rs 55, prevailing as on 23 December 2007, to Rs 20 per transaction.
The RBI had ruled out banks' appeal 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.
The guidelines are being issued to cheer customers to utilize ATM cards and assure greater simplicity in banking operations.