From Mar 31, pay Rs 20 for using any ATM

It’s news….. In case you missed itin the news dailies… here it is….!!! Note that this is only for a period of one year. The news item seemed pretty confusing to me. They seem to alternate between ‘I should pay rs. 20/-‘ and ‘i need not pay any money’ with each paragraph. I wonder who thought this person journalism!!!!

  • Para 1 says –  Customers will have to pay a maximum of Rs 20 for withdrawing cash from an ATM
  • Para 2 says – Aiming to make all ATM usage free from April 2009
  • Para 3 says – RBI also said that banks cannot charge their own customers for ATM usagePara 5 says – a bank will not be able to charge more than Rs 20 for transactions carried

Anyway…. From what I understood….. We will have to pay Rs. 20/- for all atm transactions done in 2008. From March 2009, its all going to be free!!! Is this right??? I am not sure..!!!

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.

[ Read original news ]

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