ATM withdrawals may no longer be free

Soon account holders may have to pay to withdraw money from their own bank’s ATMs.

The Indian Banks Association (IBA) has proposed that the mandatory five free transactions that banks are required to allow in a month include even the ones at the ATMs of an account-holder's bank.

This proposal for additional charges comes in the wake of higher expenditure foreseen by banks given the new directive that every ATM kiosk should have guards as well as electronic surveillance in the form of CCTVs.

The instructions have come from state governments in the wake of a brutal attack at an unguarded ATM kiosk in Bangalore last year.

The Reserve Bank of India said it will have no objections to banks charging customers for transactions on automated teller machines, provided they charge a "reasonable" fee

"If banks charge a reasonable fee on ATM (automated teller machines) transactions then the RBI will have no objections," Chakrabarty told reporters on Thursday at an event.

"If banks are going into losses they will have no choice but to raise charges," Chakrabarty said.

HDFC is the winner in large banks category.

Overall score: 2,293.13

(Photo: Reuters Pictures)

1 / 10
India Today Group
Tue 26 Nov, 2013 8:30 AM IST

As of now, no request has come from lenders to raise fees for ATM-related transactions, he said.

Also, the issue of charging customers for using ATMs ought to be left to competitive market forces and banks should be given the liberty to decide their own offerings, he added.

Currently, free transactions at cash outlets of other lenders are fixed at five per month. A customer can use his or her bank's ATM as many times in a month.



Latest News

  • RBI expected to stand pat, words weighed for future cuts

    India's central bank policy review is expected to yield little in the way of action on Tuesday, but its statement will be pored over for clues as to whether there is a chance of another interest rate cut this year. Despite a spike in food prices pushing consumer inflation to an eight-month high, some analysts believe the Reserve Bank of India would leave the door open for further easing, so that it can strengthen economy's so far patchy recovery if it can. "We expect the RBI to keep the repo …

  • Gold closes in on 5-1/2-year low as U.S. rate worries weigh

    Gold dropped for a third session in four on Tuesday, closing in on a 5-1/2-year low, with selling pressure supported by expectations that the Federal Reserve is set to raise interest rates this year. Spot gold (XAU=) slipped 0.3 percent to $1,082.8 an ounce by 0042 GMT, near last month's low of $1,077, the weakest since February 2010. The U.S. Institute for Supply Management's index of national factory activity slipped to 52.7 in July, falling short of expectations that it would match last …

  • Oil prices edge up after 5 percent fall, but outlook weak
    Oil prices edge up after 5 percent fall, but outlook weak

    Oil prices edged up in early Asian trading on Tuesday following a 5 percent fall in the previous session, as high global production and a weakening economic outlook, especially in Asia, prompted analysts to warn of further falls. Oil output by the Organization of the Petroleum Exporting Countries (OPEC) reached the highest monthly level in recent history in July, and production could rise further if Iran achieves a plan to raise output by 500,000 barrels per day (bpd) as soon as sanctions are …

  • Asian shares edge down, oil stabilises after rout

    Asian shares edged lower on Tuesday after downbeat economic data pressured Wall Street ahead of key U.S. jobs data later this week that could provide a key clue to the timing of the U.S. Federal Reserve's interest rate increase. Crude oil prices stabilized after plunging overnight, with U.S. crude (CLc1) adding about 0.6 percent to $45.42 a barrel. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was down 0.2 percent in early trading, while Japan's Nikkei stock index …

  • Bradesco to acquire HSBC Brazil unit, biggest-ever buy
    Bradesco to acquire HSBC Brazil unit, biggest-ever buy

    Banco Bradesco SA (BBDC4.SA) agreed to buy HSBC Holdings Plc's (HSBA.L) Brazilian unit for a surprisingly high 17.6 billion reais ($5.2 billion), narrowing the gap with larger rivals while boosting its base of affluent customers in Latin America's largest economy. The deal between Bradesco and Europe's largest bank includes the latter's Brazilian retail banking and insurance units. The all-cash acquisition will allow Bradesco to close the asset gap with larger rivals Itaú Unibanco Holding SA …

  • AIG profit beats estimates, boosts buyback by $5 billion
    AIG profit beats estimates, boosts buyback by $5 billion

    The results were primarily driven by investments in one of China's biggest insurers and earnings from the insurer's stake in aircraft lessor AerCap, but lower underwriting at most of its units caused concern. S&P Capital IQ analyst Cathy Seifert said AIG only beat because of income from a company it had essentially taken off its balance sheet. Pretax earnings from AerCap more than doubled to $127 million in the second quarter ended June, helping push AIG's operating income after tax to $1.9 …

  • U.S. Department of Justice initiates criminal probe against Deutsche Bank …

    The probe investigates so-called mirror trades, where the bank's Russian clients bought stocks in rubles, and through simultaneous transactions in London, bought the same stocks in U.S. dollars, thereby moving funds out of Russia without informing authorities, Bloomberg reported. Last month, The New York State Department of Financial Services (DFS) sought detailed information from Deutsche Bank on possible money-laundering transactions by some of its clients in Russia that could exceed $6 …

  • Weak oil prices, China worries drag Wall Street lower
    Weak oil prices, China worries drag Wall Street lower

    Exxon Mobil (XOM.N) and Chevron (CVX.N), which reported poor results on Friday, led the losses. Oil prices fell on fresh evidence of growing oversupply and data highlighting slowing demand in China. China's factory activity shrank more than initially estimated last month, a survey showed. …




    Recent Quotes
    Symbol Price Change % Chg 
    Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
    You need to enable your browser cookies to view your most recent quotes.
    Sign-in to view quotes in your portfolios.