NEWS & ADVICE : CREDIT CARDS
Banks planning to allow only two free transactions at non home branch ATMs
By Ankit Sharma
Jun 3, 2014
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It has been reported that Banks have asked the RBI to reduce the number of transactions made from the non home branch ATMs from 5 to 2. Non home branch ATM is the ATM in which customer do not possesses an account. At present bank allows the customer to make 5 transactions free at the non home branch ATM, if the RBI approves for the bankers decision then it will be reduced to two. Further the banks have also demanded to increase the interchange fee- the fees charged by the one bank from the other bank, in case the customer makes transactions at the non home ATMs, from Rs 15 to Rs 16.50 plus service tax that makes a total of Rs 18.48.

The customer’s bank pays this fee to the bank that maintains the ATM when the customer makes more than five transactions. Earlier it was proposed to raise the fee to Rs 18 plus service tax, but all the banks did not agreed, now the new rate 16.50 plus service tax has been agreed. Banks have agreed that the new structure is feasible.

The measure to increase the fee came up after the banks were asked to improve the security systems in the bank’s ATM after the brutal attack on a woman in Bangalore last year. Since the public sector banks find the increase to Rs 18 plus service tax very steep, the earlier proposal had to be revised.


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