Free ATM transactions to become history, banks to charge money

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Bangalore, Jan 8: Free ATM transactions might become history in India. According to media reports, several bank officials proposed Reserve Bank of India (RBI) to allow them to charge customers for transactions from every sixth visit at Automated Teller Machines (ATMs).

The new proposal includes home banks and cash, non cash transactions like balance inquiry as well. As per the current rules, customerscan access his/jher bank's ATM (the bank in which he/she holds an account) any number of times free of charge. However, customers are charged up to Rs 20 at the sixth transactions through other bank ATMs.

RBI has been requested to increase the fee from Rs 15 to Rs 18

Banks now want RBI to limit the total number of free transactions (at home bank and other banks' ATM) to five per month.

For every transaction that customers make at another bank's ATM, the home bank has to pay an "interchange fee" to that bank for letting customers use its services. It costs is Rs 15 per transaction presently.

RBI has been requested to increase the fee from Rs 15 to Rs 18. If approved, this would mean a higher fee from the sixth transaction in a month. The fee on non-cash transactions is Rs 5, which will remain the same.

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