Mumbai: The Reserve Bank of India on 24 December released a draft approach paper on banks’ automated teller machines (ATMs), which would pave the way for providing a transparent framework for levy of service charges on ATM usage.
The paper titled “ATMs of Banks: Fair Pricing and Enhanced Access” is intended to establish a fair and transparent framework for service charges on ATM usage so that it encourages financial inclusion and enhances access to ATMs.
“As the charges levied on the customers vary from bank to bank and also vary according to the ATM network that is used for the transaction, a customer is not aware, beforehand, of the charges that will be levied for a particular ATM transaction,” the central bank said in a release.
“This generally discourages the customer from using the ATMs of other banks. Enhanced and cost effective access to ATMs plays an important role in technology based financial inclusion,” it added.