"You are saying charging for using your ATMs. Tomorrow
you will start charging for going to the bank."
- Chakrabarty Comment on Banks which are demanding ATM
transaction Fees...
Amidst rising demand from banks that they be
allowed to increase user fees and limit free access to automated teller
machines (ATMs), senior-most Reserve Bank Deputy Governor K C
Chakrabarty today said it is "ridiculous" for a bank to charge its own
customers for these services. "You are saying charging for using your
ATMs. Tomorrow you will start charging for going to the bank,"
Chakrabarty said here while replying to a query on the matter. "I think
it is a little bit ridiculous that bank will charge customers for using
an ATM," he said, adding that banks must compare the charges of serving
a customer at a branch as against at the ATM. RBI does not decide on
service charges, and it was up to the banks to decide their charges, he
added. Last week financial services secretary Rajiv Takru had said
decision on ATM charges would be taken by the Reserve Bank. Takru had
himself favoured free ATM services.
Most banks are losing money because of ATMs. After a near-fatal attack on a Corporation Bank employee at an ATM in Bangalore last November, many states made it mandatory to have round-the-clock security at ATMs, pushing up banks' costs. Banks' umbrella body IBA had said this would cost an additional Rs 40,000 per ATM per month. The IBA requested RBI to cap the number of free transactions to five per month across any ATM network.
Most banks are losing money because of ATMs. After a near-fatal attack on a Corporation Bank employee at an ATM in Bangalore last November, many states made it mandatory to have round-the-clock security at ATMs, pushing up banks' costs. Banks' umbrella body IBA had said this would cost an additional Rs 40,000 per ATM per month. The IBA requested RBI to cap the number of free transactions to five per month across any ATM network.
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