In order to recover the increasing cost at the ATMs, Indian Banking Association (IBA) has come up with a new suggestion. IBA has asked to charge the fee for making transactions at the non home ATMs from the customers. IBA chief executive officer stated that they have suggested the apex bank to charge the fee for withdrawals from non home ATMs in the urban areas, where as no fees will be levied in rural and semi urban areas.
Currently the customers are provided with the 5 free transactions at the non- home ATMs and from the 6th transaction onwards they are charged a fee of Rs 20, and they can make any number of transactions from the own bank’s ATM free of cost.
The Number of ATMs is increasing the country, the security issues relating to ATMs are also increasing. The security arrangements of 1.4 lakh bank ATMs were reviewed, leading to additional costs for manning them. To manage the increasing cost the IBA wants to levy fee from the customers for all the withdrawals made at the non-home ATMs.