IBA suggests imposing fee on cash withdrawals from ATMs
30/06/2014 14:48
The Indian Banks' Association (IBA) has suggested levying a fee on cash withdrawals from ATMs in cities by customers of other banks to help recover increasing costs, reported PTI. "We have recommended to the Reserve Bank of India imposing a fee for withdrawing money from non-home bank ATMs in urban areas, while no fee has been proposed for transactions in semi-urban and rural areas," IBA Chief Executive Officer M V Tanksale told media. While there is no limit on customers who use their own bank's ATMs, there is a cap of five free transactions for use of ATMs run by other banks. From the sixth transaction, they have to pay Rs 20 for every withdrawal. The cost of operating ATMs increased after security measures were tightened following an incident in Bangalore in November last year, when a woman employee of Corporation Bank was attacked by an intruder with a machete. The security arrangements of 1.4 lakh bank ATMs were reviewed, leading to additional costs for manning them. According to the IBA, the additional security requirements have pushed up the cost of operating a single ATM by up to Rs 40,000 a month.
30/06/2014 14:48
The Indian Banks' Association (IBA) has suggested levying a fee on cash withdrawals from ATMs in cities by customers of other banks to help recover increasing costs, reported PTI. "We have recommended to the Reserve Bank of India imposing a fee for withdrawing money from non-home bank ATMs in urban areas, while no fee has been proposed for transactions in semi-urban and rural areas," IBA Chief Executive Officer M V Tanksale told media. While there is no limit on customers who use their own bank's ATMs, there is a cap of five free transactions for use of ATMs run by other banks. From the sixth transaction, they have to pay Rs 20 for every withdrawal. The cost of operating ATMs increased after security measures were tightened following an incident in Bangalore in November last year, when a woman employee of Corporation Bank was attacked by an intruder with a machete. The security arrangements of 1.4 lakh bank ATMs were reviewed, leading to additional costs for manning them. According to the IBA, the additional security requirements have pushed up the cost of operating a single ATM by up to Rs 40,000 a month.
