What changed
RBI introduced a uniform fee structure for ATM transactions. Own bank ATM usage and balance enquiries at other bank ATMs are now free. Cash withdrawals at other bank ATMs are capped at Rs. 20 per transaction immediately, with a move to free usage from April 1, 2009.
What it means for you
Co-operative banks must immediately stop charging customers for using their own ATMs and for balance enquiries at other bank ATMs. For cash withdrawals at other bank ATMs, charges exceeding Rs. 20 must be reduced to Rs. 20 or less, and from April 2009, these must be free. This increases transparency and encourages ATM usage across networks.
What you must do
- Update ATM fee schedules to ensure own bank ATM usage and balance enquiries at other bank ATMs are free from receipt of circular (May 13, 2008).
- Cap cash withdrawal charges at other bank ATMs at Rs. 20 per transaction immediately, and plan for free service from April 1, 2009.
- Communicate the new fee structure to all branches and ATM operations teams for compliance.
- Acknowledge receipt of the circular to the respective RBI Regional Office.
Who it affects
State Co-operative Banks (StCBs), District Central Co-operative Banks (DCCBs), Customers of co-operative banks using ATMs
Are there any charges for using my own bank's ATM?
No, using your own bank's ATM for any purpose is free with immediate effect from May 13, 2008.
What is the maximum charge for cash withdrawal at another bank's ATM?
The charge is capped at Rs. 20 per transaction immediately, and will become free from April 1, 2009.
Does this circular apply to credit card cash withdrawals or international ATMs?
No, banks can set their own charges for cash withdrawals using credit cards or at ATMs located abroad.