Thread: Third Party ATM usage will be charged after October 2009 - RBI

The Indian Banks Association (IBA) has proposed to levy a service charge if account holder uses a third part ATM beyond five times in a month. The Reserve Bank of India (RBI) has approved the IBA proposal.

RBI had freed unlimited usage of all ATMs by account holder from 1st April 2009. Though the ATM usage was made free for customers, the bank is required to pay a charge of Rs 18-20 per transaction to bank that owns the ATM.

The IBA proposed RBI to cap third party ATM usage at Rs. 10,000 per Day, limiting such transactions to five per month. Now the RBI has approved this proposal, it would be applied after October 2009. It will be optional on banks to levy such charges on customers.

Be sure from your banker about new rules for using Third party ATM.

Thanks for sharing info Neer01

Originally Posted by neer001

The Indian Banks Association (IBA) has proposed to levy a service charge if account holder uses a third part ATM beyond five times in a month. The Reserve Bank of India (RBI) has approved the IBA proposal.

RBI had freed unlimited usage of all ATMs by account holder from 1st April 2009. Though the ATM usage was made free for customers, the bank is required to pay a charge of Rs 18-20 per transaction to bank that owns the ATM.

The IBA proposed RBI to cap third party ATM usage at Rs. 10,000 per Day, limiting such transactions to five per month. Now the RBI has approved this proposal, it would be applied after October 2009. It will be optional on banks to levy such charges on customers.

Be sure from your banker about new rules for using Third party ATM.

thanks for info

Good one neer rep added

Originally Posted by Vikram09

Thanks for sharing info Neer01

My pleasure :001_smile:

Originally Posted by Pri_dm

Good one neer rep added

Thanks..

So nice of you..

Originally Posted by perry261

thanks for info

My pleasure :001_smile:

The main hit for this was taken by ICICI Bank who came out a net paying bank even though they are supposed to be having the largest ATM network. Seems like those ATMs are not in the proper place or never adequately loaded with cash. So the ciustomers simply went to the nearest available ATM of any other Bank.
Another example of the Govt. machinery and initiative falling prey to the demands of private players. The customers can go the docks.

Definitely not a good move from customer perspective. However a limit of 5 withdraws per month is a decent. Banks won't be happy if ATMs are made universal.

Nice share neer001.

Originally Posted by meetdilip

Definitely not a good move from customer perspective. However a limit of 5 withdraws per month is a decent. Banks won't be happy if ATMs are made universal.

ATMs were made universal w.e.f. 1.4.2009.
Most Banks did not have any problem as they were either earning as much as they were paying or were at a profit.
The only exception was ICICI Bank.

it would be nice to have a review of all the banks with pros/cons if any.

Originally Posted by newprouser

it would be nice to have a review of all the banks with pros/cons if any.

pros/cons as in respect of what?

in general. cutomer service, fecilties available and how good they are etc.

then that would have to be a new thread only.

Originally Posted by panchabhut

ATMs were made universal w.e.f. 1.4.2009.
Most Banks did not have any problem as they were either earning as much as they were paying or were at a profit.
The only exception was ICICI Bank.

The ATM usage were made universal because the third party ATM usage was being charged undefined by the Banks. I was charged between 25 to 100 from different banks for different amount.

Now it will be OK for free 5 usage per month and if it will be informed on each ATM.

But for me, it will be difficult because I use ATM more than 100 times in a month, even for small amounts. It is because there are many ATMs are nearby except my bank's.

Originally Posted by neer001

The ATM usage were made universal because the third party ATM usage was being charged undefined by the Banks. I was charged between 25 to 100 from different banks for different amount.

Third-party ATM charges were made universal @ Rs. 20 per withdrawal and free for balance enquiry w.e.f. 1.4.2008 and were made free from 1.4.2009.

If any bank has charged more than that amount during this period, you should lodge a complaint for refund.

Limiting the third party ATM usage to Rs 10,000 is really bad. What if during an emergency you don't find your bank ATM. I have had such an experience once when I required money to pay the hospital bill & I couldn't find an ICICI ATM near by.

Normally most hospitals these days accept credit/debit cards.

Originally Posted by panchabhut

Normally most hospitals these days accept credit/debit cards.

But on airport, ticket booking counter accept only credit cards, not Debit ATM cards.

Which Debit Card do you have?
I was never refused by any airlines.

Originally Posted by panchabhut

Which Debit Card do you have?
I was never refused by any airlines.

I have ICICI, IDBI and PNB Debit cards.
Normally I used to book online or through agents. But card was refused on Kingfisher red booking counter at Delhi airport.

Originally Posted by panchabhut

Normally most hospitals these days accept credit/debit cards.

My credit card outstanding balance was less on that day & the bill was huge. Till now I have never swiped my debit card so that option never came in my mind.

Originally Posted by Rameshjeee

Till now I have never swiped my debit card so that option never came in my mind.

Hoo that was a bad run rameshjee....

Originally Posted by neer001

I have ICICI, IDBI and PNB Debit cards.
Normally I used to book online or through agents. But card was refused on Kingfisher red booking counter at Delhi airport.

some merchants refuse maestro debit cards because of the PIN requirement at the time of transaction. But Visa Debits are generally accepted everywhere. PNB and SBI normally issue Maestro cards. ICICI generally issues Visa cards. Don't know about IDBI.

Originally Posted by panchabhut

some merchants refuse maestro debit cards because of the PIN requirement at the time of transaction. But Visa Debits are generally accepted everywhere. PNB and SBI normally issue Maestro cards. ICICI generally issues Visa cards. Don't know about IDBI.

Some banks including ICICI and IDBI offer to choose between both VISA and Maestro cards.