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

  • Indian economic recovery likely to slow: Nomura

    New Delhi, Feb 7 (IANS) India's economic growth momentum is likely to slow down in the face of weak external conditions and sluggish investment demand, according to the Japanese financial services firm Nomura. Nomura's proprietary indices for India, together with the high frequency data, indicate some slowdown in the growth momentum towards end-2015 and a high likelihood of further monetary policy easing, it said in a research note. There is a "downside risk" to its baseline forecast of 7.8 …

  • Assocham urges women-friendly budget to help them join workforce

    New Delhi, Feb 7 (IANS) Business chamber Assocham said on Sunday it has suggested the government should hike the children's education allowance and offer tax exemptions to creche facilities in the union budget for 2016-17 to encourage more women join the workforce. "To encourage more women in the workforce, it is desirable that a specific provision be introduced for allowing exemption for creche provisions," the Associated Chambers of Commerce and Industry of India (Assocham) has said in its …

  • Japan auto parts maker exploring joint venture in India

    New Delhi, Feb 7 (IANS) The Japan Automatic Machine (JAM) company, which has been selling its auto components in India, said on Sunday that it is currently in talks to set up a joint venture project in the country. "We are now looking for a major joint venture project and have already initiated the process of discussions for this purpose," JAM chief executive Masafumi Mizuno told reporters here at the components part of the ongoing Auto Expo. The India production centres would help reduce …

  • As Big Oil shrinks, boards plot different paths out of crisis
    As Big Oil shrinks, boards plot different paths out of crisis

    LONDON/HOUSTON (Reuters) - As oil and gas companies cut ever-deeper into the bone to weather their worst downturn in decades, boards have adopted contrasting strategies to lead them out of the crisis. Crude prices have tumbled around 70 percent over the past 18 months to around $35 a barrel, leading to five of the world's top oil companies reporting sharp declines in profits in recent days. American firms Chevron ConocoPhillips and Hess Corp are withdrawing from more costly deepwater projects …

  • China FX reserves fall almost $100 bln to lowest since May 2012

    China's foreign reserves fell for a third straight month in January, as the central bank dumped dollars to defend the yuan and prevent an increase in capital outflows. China's foreign reserves fell $99.5 billion to $3.23 trillion in January, the lowest level since May 2012, central bank data showed, but higher than the median forecast of $3.20 trillion from economists surveyed in a Reuters poll. The central bank has intensified efforts to prop up the yuan after it staged a surprise …

  • New breed investors embrace China's white-knuckle ride
    New breed investors embrace China's white-knuckle ride

    A new breed of small investor is riding China's rollercoaster stock markets, looking for a quick buck and thriving on the volatility that has sent others scurrying to the exit clutching their stomachs. Last summer's 40 percent crash and a 20 percent drop so far in 2016 have sent trading volumes tumbling on the Shanghai and Shenzhen bourses, where retail investors account for 85 percent of the business, unlike more developed markets, where institutions dominate. …

  • Jet Airways' Q3 net profit rises over six times

    Mumbai, Feb 6 (IANS) Jet Airways on Saturday reported an exponential rise of over 640 percent in its net profit for the quarter ended December 31, 2015. According to the company, its net profit for the ... …

  • 'Wine industry needs nationwide uniform tax policy'

    Bengaluru, Feb 6 (IANS) A nationwide uniform tax policy is the most crucial need for Indian wine industry to grow, said the chief executive of a leading Indian wine maker on Saturday. "Every Indian state has its own taxes and duties policy which is a challenge as rules change from state to state. The Indian wine industry needs a uniform policy across the country," said Grover Zampa CEO Sumedh Singh Mandla at "The Great Grover Wine Festival" here. …

DON'T MISS

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    78.85+2.90+3.82%
    SPICEJET.BO
    15.75+1.35+9.38%
    SUZLON.BO
    73.85+6.10+9.00%
    VEDL.BO
    234.00+7.85+3.47%
    TATASTEEL.BO
    10.82-0.66-5.75%
    VIRTUALG.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    154.85+25.80+19.99%
    TAKE.BO
    51.70+8.60+19.95%
    KIL.BO
    178.00+29.60+19.95%
    JINDWORLD.BO
    47.05+7.80+19.87%
    MRO-TEK.BO
    32.60+5.15+18.76%
    BCP.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    369.60-92.40-20.00%
    NUTRA.BO
    75.30-18.80-19.98%
    GKCONS.BO
    11.23-2.77-19.79%
    FEINDIALTD.BO
    80.30-18.40-18.64%
    HIGHGROUND.BO
    21.05-2.85-11.92%
    PRIMEPRO.BO

QUOTES

 
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.