ATM Fees Restructuring

With advancement in banking sector India saw arrival of ATM machines whose annual fees differed according to banks concerned. Government owned banks would charge Rs. 100 and fees private banks levied were Rs. 500 annually collected from accountholders.

Revolution came in 2007 when the Reserve Bank of India (RBI) instructed commercial banks through a directive not to charge for ATM services. Effective date fixed for that was 1 April 2009 when charges were completely abolished.

A renaissance came in 2009 while accountholders were given additional facility to use ATM machines of other banks without paying service charge for such services. Banks would previously charge Rs 10 to 35 for each mutual transaction.

Steps were taken to make free mutual ATM usage for 5 times on monthly basis and rest transactions with Rs 20 each for savings and term deposits. Current and rest others were still charged nominally.