NEW DELHI: Customers will have to pay a maximum of Rs 20 for withdrawing cash from an ATM of another bank from March 31, 2008. However, balance inquiries will attract no charge with immediate effect.
The charge for cash withdrawal is only till March 31 next year, after which it will become zero. Aiming to make all ATM usage free from April 2009, the Reserve Bank of India on Monday said banks cannot charge for balance inquiries and capped the fee for cash withdrawals at Rs 20 per transaction, irrespective of the amount and the bank where the customer holds the account.
In a circular issued to all commercial banks, RBI also said that banks cannot charge their own customers for ATM usage, with immediate effect.
This is the first instance of RBI fixing tariff for the use of ATMs. So far, banks fixed such charges on their own. As charges vary from bank to bank, a customer can’t be sure of the amount he will have to pay for using an ATM of a bank other than the one in which he holds an account.
In the wake of the circular, a bank will not be able to charge more than Rs 20 for transactions carried out using the ATM card of another bank.
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