| RBI moots free inter-ATM use |
| BS Reporter / Mumbai December 25, 2007 |
| The Reserve Bank of India (RBI) today suggested that customers of one bank be allowed free use of ATMs of other banks, including for cash withdrawal, from April 1, 2009. The RBI move has made banks with large ATM networks cry foul. |
| In a draft approach paper on ATMs of Banks: Fair Pricing and Enhanced Access, RBI said the use of ATMs of own banks for any purpose and of other bank ATMs for balance enquiries should be free of cost, with immediate effect. |
| For withdrawal of cash from ATMs of other banks, RBI wants banks to cap charges at the rates prevailing as on December 23, 2007, to reduce all charges to a maximum of Rs 20 per transaction from up to Rs 55 charged now from March 31, 2008. It has further suggested that cash withdrawals from any bank ATMs should be free from April 2009. |
| This circular has sent shock waves among banks that have built a strong ATM network such as State Bank of India, ICICI Bank, HDFC Bank and Axis Bank. |
