Attentions for ATM user Posted Date: 26 Oct 2009     Resource Type: News/Announcements     Category: General Author: Suresh Member Level: Silver     Rating: Points: 2

hi...... It may soon cost you less to withdraw from the ATM of another bank (a bank you don’t “bank” with). A draft paper issued for discussion today by the Reserve Bank of India has proposed this. The RBI’s draft paper has suggested that banks currently charging more than Rs 20 per cash withdrawal should reduce it to Rs 20, effective March 31, 2008. It also recommends that the transactions be made free, effective April 1, 2009. Banks will also not be allowed to increase the transaction charges beyond those prevailing as on December 23, 2007. Based on information collected from all public sector banks and a cross-section of other banks, the RBI says that banks charged anything between zero and Rs 57 per transaction for cash withdrawals and ‘balance’ enquiry. “The charges depend on the network relationship between the bank owning the ATM and the customer’s own bank,” said the draft paper. Banks having bilateral arrangements charged lower fees for transactions involving the two but higher for those outside it. The charges vary from bank to bank and network to network making it difficult for a customer to be informed about the charges and thereby making them wary of using other banks’ ATMs. The paper says that there was a lack of transparency in the fee structure. Mr Aspy Engineer, Vice-President-Alternate Channels, Retail Banking Department, Axis Bank, said, “The draft paper suggests that banks should only charge their customers the interchange fee that the bank is liable to pay to the other bank. The additional amount that the banks were charging in order to make profit has to be waived off.” Axis Bank offers free transactions to its ‘priority banking’ customers. A senior bank official from a private bank said that RBI’s move would discourage banks to expand their ATM networks and it would be a disadvantage for banks which had a huge network of ATMs as it would be a loss of revenue

Responses

No responses found. Be the first to respond and make money from revenue sharing program.

Feedbacks

Popular Tags   What are tags ?   Search Tags   Sign In to add tags. Attentions for ATM user  .

Post Feedback This is a strictly moderated forum. Only approved messages will appear in the site. Please use 'Spell Check' in Google toolbar before you submit. You must Sign In to post a response.

Next Resource: Share a Prize of Rs.3 Lakh-Participate in 'Breakthrough' Previous Resource: Global population to reach 7 billion by 2011 Return to Discussion Resource Index Post New Resource Category: General Post resources and earn money!   More Resources Share a Prize of Rs.3 Lakh-Participate in 'Breakthrough' 'Win Cash Prizes upto 12 lakh' Toyota Launches new Hybrid 2010 mca University of minnnesota public health residency program. Food security and GM crop???