Reserve Bank frees ATM services of charges

March 11th, 2008 - 12:29 am ICT by admin  

Mumbai, March 10 (IANS) The Reserve Bank of India (RBI) Monday removed all charges on using the cash vending machines, except for withdrawing money for which a maximum fee of Rs.20 has been prescribed. Even the withdrawal fee will be abolished from April 1, 2009. While issuing guidelines on charges for use of ATMs, the RBI has asked the banks to abolish with immediate effect all charges on services such as balance enquiry.

The banks, however, will have the freedom to fix charges for withdrawal of cash from ATMs through credit cards and from ATMs located abroad.

The guidelines, which are being issued in pursuance of the approach paper on ATM charges brought out by RBI in December 2007, seek to abolish fee on cash withdrawal from ATMs from April 1, 2009.

During the intervening period, the banks have been allowed to charge a maximum ATM cash withdrawal fee of Rs.20, irrespective of the amount withdrawn.

“The charge of Rs.20 will be all inclusive and no other charges will be levied to the customers under any other head ,irrespective of the amount of withdrawal,” the apex bank said in the communication issued to all banks.

The guidelines are being issued to encourage customers to use ATM cards and ensure greater transparency in banking operations, it said.

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