Business Economy 09 Nov 2016 Banks to seek RBI&rs ...

Banks to seek RBI’s nod to hike ATM fees

DECCAN CHRONICLE. | KAMALAPATHI RAO H
Published Nov 9, 2016, 1:03 am IST
Updated Nov 9, 2016, 2:16 am IST
Banks spend around Rs 2.5 lakh per kiosk in metro cities.
Currently, banks are having different caps on transactions at the same bank ATMs and other banks/non-financial institutions’ ATMs.
 Currently, banks are having different caps on transactions at the same bank ATMs and other banks/non-financial institutions’ ATMs.

Hyderabad: While bank customers are opposing the cap on the cash withdrawals through ATMs and transaction charges beyond the limited transactions, the Indian Bank Association (IBA) sent proposals for increasing the service charges in the view of overcome maintenance burden on white ATMs.

Currently, banks are having different caps on transactions at the same bank ATMs and other banks/non-financial institutions’ ATMs. The bankers categorised ATMs into two sorts — Green and White. While Green ATMs are existed at the branch offices (on-site), the white ATMs are located at off-site in cities and rural areas.

 

Last month, bankers approached the IBA seeking increase in transaction charges as the maintenance charges towards white ATMs have been increasing year-after-year.

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Based on the urges, the IBA sent proposals on the matter to the RBI. A source from RBI said that the maintenance for white ATM in metro cities was increased to about Rs 2.5 lakh per month against Rs 1.5 lakh earlier.

“Mostly, outsourcing firms are maintaining such ATMs. For increasing surveillance at the ATM centers, all the bankers deputed security guards round the clock in three shifts. Besides this, rent for the ATM room, A/C charges, power bills, cash loading charges have been raised,” the source said.

 

Although, bankers are charging transaction fee from Debit card users beyond the limited cap, the source added, “The charges and other service charges are not meeting their expenses and they requested the RBI for approval. The RBI is examine the matter and most probably can give a green signal soon,” the source explained.

Besides this, on November 6, the RBI has told the Delhi High Court that the cap on the number of withdrawals from ATMs by customers without being charged was a policy decision taken in public interest.

“ATM facility was made available with a view to reduce cash usage and increase electronic transactions in the country,” the RBI informed the court responding to a PIL filed by advocate Swati Aggarwal. RBI’s counsel informed the court that the PIL was not meant to be a weapon to challenge the financial decisions which were taken by the RBI in exercise of their powers.

 

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