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ATMs of Banks: Fair Pricing and Enhanced Access

Banks have been deploying Automated Teller Machines (ATMs) to increase their reach. At present, banks in India have deployed more than 31,000 ATMs. Banks have also entered into bilateral or multilateral arrangements with other banks to have inter-bank ATM networks and to increase the usage of ATMs as a delivery channel. ATMs have gained prominence as a delivery channel for banking transactions in India, especially for cash withdrawal and balance enquiry.

The charges range from 'Nil' to Rs.57/- per transaction when their customers use the ATMs of other banks for cash withdrawals and balance enquiry. The charges depend on the network relationship between the bank owning the ATM and the customerís own bank.

International experience indicates that in countries such as UK, Germany and France, bank customers have access to all ATMs in the country, free of charge except when cash is withdrawn from white label ATMs or from ATMs managed by non-bank entities.

As the charges levied on the customers vary from bank to bank and customer is not aware, before hand, of the charges that will be levied for a particular ATM transaction. This generally discourages the customer from using the ATMs of other banks.

Reserve Bank of India feels that cost effective access to ATMs will encourage usage of ATMs and will play an important role in technology based financial inclusion. RBI has invited feedback to establish a fair and transparent framework for levy of service charges for ATMs

Report on Indian ATM Industry
Special Section on ATMs
Tips to users for Fraud Prevention



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