Bank Seek to charge fees after 5 Transaction at own ATM but RBI DG Refused.

On Jan 7, Indian Banks Association requested the Reserve Bank of India to permit them to get fees from customer for making any sixth transaction from own ATMs. Currently, bank allows unlimited number of bank transaction to their customers without any fees. Now, they want to charge fees on each transaction after first five cash or non – cash i.e. balance enquiry transaction of every month.

For each transaction that you make at an alternate bank’s ATM, your bank need to pay a “interchange fee” to that bank for giving you a chance to utilize its administrations. The charge is Rs15 for every transaction right away. Banks have asked for RBI to build the charge from Rs15 to Rs18. In the event that sanction, this might mean a higher expense from the sixth transaction in a month. The expense on non-money transactions is Rs5, which will continue as before.

Indian Banks Association Chief said,” Vast amount of investment for installing a set-up of ATM’s is a biggest factor for reducing their profit. Gun – Man Security, CCTV camera set-up and Now Aadhar card enabled ATM’s makes the ATM’s facility costlier.

In a next day i.e. on Jan 8, RBI Deputy Governor K C Chakrabarty has said that such a move on the part of banks would be ‘ridiculous’ and ‘illogical’. He refused the proposal of Indian Bank’s Association to charge customer from customer on every transaction after five transactions per month.

Mr. Chakrabarty said to media that ” it is quite, exceptionally absurd that banks are charging the clients for withdrawing cash, and that too from their own particular ATMs,  it never happens anyplace.” It is good sign from the RBI Deputy Governor’s side that he is not in favor of allowing for any system that permit banks to charge fees for ATM transaction from own ATMs. After the RBI DG statement, Indian Banks Association is now going to rethink on their proposal to minimize the cost of ATM’s transaction as well as how to increase their profibility.

Written by Ranjeet Jha

Ranjeet Jha

Hey there! My name is Ranjeet. I’m a Web Designer & Front-end Developer. I am passionate for designing an front-end codding. Writing is my hobby. I write about what I like, hope you also like it. Enjoy Reading..

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