Banks are pitching for a Rs 15-18 extra cost on all non-free ATM transactions, which will include interchange fees, switching costs and service tax charges
MUMBAI : The Indian Banks’ Association has asked the Reserve Bank of India of to review the existing norms for automated teller machines in India, and requested a total free transaction cap of five across bank and non-bank ATMs, M.V. Tanksale, the association’s chief executive, said at a select media meet.
ATM charges of Rs 15-18 per transaction have also been suggested. Currently, all ATM transactions at a customer’s bank are free of cost while free non-bank transactions are capped at five with a transaction cap of 10,000 rupees.
He explained that the review had been sought as banks were keen to monetise transactions, following the higher costs on security after an attack on a woman at a Corporation Bank ATM in Bengaluru a few weeks ago.
Costs on security are set to surge for banks as they will have to have security guards at all ATMS, and also provide video surveillance outside the ATM, along with video feed from within the ATM kiosk. To contain costs, banks are also looking at closing ATMs late in the night when the volume of transactions are negligible.
Tanksale said that the utilisation of ATMs should be linked to cost, and will lead to better customer discipline on ATM usage along with shifting of non-core transactions like balance enquiry back to mobile and net banking.
By March 2014, banks are expected to have on-site ATMs at all their branches. Tanksale said that banks must encourage customers to shift to ATMs for cash withdrawals and mobile and net banking for information linked queries in order to prevent cluttering at the bank branches.
Tanksale said that banks were working aggressively to seed their accounts with Aadhar numbers, so as to facilitate direct benefit transfer of subsidies. -Cogencis