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Jan 7, 2014

ATM usage charges may rise

Banks are likely to start charging customers for transacting more than five times a month at any bank ATM, including their own bank. Banks have mooted the charge on ATM transactions to pay for the increased security costs at ATMs, put in place by many State Governments, following the grievous attack on a woman inside an ATM kiosk in Bangalore last November. Currently, there is no cap on the number of transactions that a customer can undertake at his own banks ATM. However, the number of free transactions at other banks ATMs has been capped at five a month. Banks may also down the shutters of some ATMs at night, especially at locations where footfalls are low. Banks have requested the RBI to allow them to increase the ATM interchange fees (the fees paid by the card-issuing bank to the acquiring bank) to Rs 18 from Rs 15 a transaction now. Further, they want to pass on the costs arising from the interchange fee and switching fee to customers from the sixth transaction onwards.

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