Banks may charge fees for all ATM transactions

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Banks may charge fees for all ATM transactions
With security being beefed up at ATM kiosks, Indian bankers have estimated the cost pertaining to provision of security to increase by over two times which they have decided to pass on its customers. With it, ATM transactions at one's bank that until now entailed no cost would no more be provided free in the near future (Note: Currently, first 5 transactions at an ATM of another bank  can be undertaken free of cost on a monthly basis). Furthermore, banks are likely to charge customers for each and every transaction performed at an ATM kiosk such as withdrawals, balance inquiry etc.

A senior official of a public-run bank was quoted in The Business Line report saying "Hiring trained guards for three eight-hour shifts, procuring arms licences, installing cameras inside and outside the ATM and connecting alarms to the nearest police station will have huge cost implications for banks".

To decide on the measures to be taken to beef up security at ATMs as well as fee to be charged from customers, banks are currently in discussion with Indian Banks' Association (IBA). In the initial study, banks have estimated a cost of Rs.6 per transaction based on the execution of 200 transactions on an average in each of the ATM kiosks installed across the country.

As the cost turns out to be huge for banks considering the number of transactions undertaken each day at ATMs, banks are mulling over the proposal to transfer this cost on its customers and hoping that the apex institution approves of it.

Read more about: banks, atm, rbi
Story first published: Friday, December 13, 2013, 11:20 [IST]
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