RBI proposes lower fee on use of ATMs of other banks
The RBI, in its draft notification, has also prohibited banks from charging any fee from customers for using ATMs of other banks for services like balance inquiry.india Updated: Dec 24, 2007 19:53 IST
Coming to the aid of bank customers who are charged an unreasonable fee, sometimes as high as Rs 57, for using ATMs of other banks, the Reserve Bank on Monday proposed a ceiling of Rs 20 on such transactions.
The RBI, in its draft notification, has also prohibited banks from charging any fee from customers for using ATMs of other banks for services like balance inquiry.
Presently, banks charge up to Rs 57 per transaction from customers who use ATMs of other banks for cash withdrawal and balance inquiry, the RBI said in its draft approach paper on Fair Pricing and Enhanced Access of Bank ATMs.
While prohibiting the banks from further increasing the ATM charges, the draft paper said that they would have to reduce the transaction fee to Rs 20 per transaction by the end of the current fiscal (March 31, 2008).
Also, the banks would be required to do away with charges for services like balance inquiry with effect from April 1, 2009, the draft added.
The central bank has invited comments from interested stakeholders by January 31 next year on its draft paper, which seeks to establish a fair and transparent framework for levy of service charges for bank ATMs.