Banks want curbs on free ATM use!!

Well, I go with your argument.  Before this liberalization many of our nationalised banks didnt provide cash to its customers when they are charging if used in other atms.  Why that has happened.

Secondly during the recent strike by all the nationalised banks for their demands, all customers of these banks gone behind the private bank atms, which has helped the people at large.

Now you can support your claim sir.

chandramouli

Why should we bother for services we avail?  It is selfish

I would have appreciated this approach, Nagpal on almost every other issue.  I am unable to agree to this particular point of view.  Just because an ATM is located away from the branch, we should not look at an ATM as a special service.  Technology facilitates decentralisation.  We must look at an ATM as a Bank offering a minimum basket of services.  Such a mini bank has a common pool of member banks.  Banks as well as other members can offer a basket of services for which the mini bank (ATM) could be a front end. 

If we look at an ATM as an extended arm of our bank, withdrawal of cash and checking balance in the account is a primary activity of a banking relationship.  The bank earns out of our money and in return, it offers us safety of our money and ease of withdrawal, while sharing a part of its earning as interest paid to us.  This is the basic premise of a banking relationship.  For this, there should not be a charge. 

Banks are anyway charging for all other services. 

If I have to run a mini bank comprising of all ATMs in the country, I can make this bank not only self sustaining but very profitable also.  Member banks and utilities will bear a fraction of the cost they would have otherwise incurred if a customer walks into their premises for this basket of services.  VISA and Mastercard ofcourse will have a more innovative and profitable revenue/expense sharing mechanism not between VISA/Mastercard and member banks but with the mini bank of ATMs. 

On the other hand, ATMs can play a very important comforting role with the individual customers.  They get a basket of free services while they would happily pay for others. 

Not necessarily in this but there is need for a change in primary understanding of a concept.  I really feel helpless many times that I am unable to change many things because these are not under my control.  But this is life.

It's good that databases of all banks have been centralized for national security -(to seize disputed money being used on terrorist's activites), but also for economical audit purposes.

If such a step is taken, strategies are also played to balance cost included in the project for integration. So why pay extra when it is a part of the services strategically!!

To draw the money in SB account for which the interest rate is low it is not ethically correct  charge the customer.  The bank earn money out of our funds in SB account.  The expenses have to borne by the banks only. 

The free usage of ATM cards at the ATMs of different banks is a facility that makes life easier for the customers of all the banks. Firstly, it helps customers to gain access to their money at all times. Secondly, it helps the banks to reduce the length of the queues at the branches. Further, it helps the banks and regulatory agencies to prevent money laundering. Therefore, it is necessary to continue allowing the free usage of ATMs.

From a user's point of view, I don't think charging on third party ATM with be correct. In today's date we cannot find every bank's ATM everywhere. So, any person who is in emergency, many a times is bound to withdraw money from any other bank. If this continues many times till he gets ATM of his own bank, and the ATM are charging every time, he will loose a big amount of money since at a time, it is very risky to travel with a huge amount of money, so he will naturally be forced to withdraw money from whichever ATM he gets. I think banks should not take advantage of this.

There something called opportunity cost and there is something else called marginal costing.  The opportunity through ATM use is that customers do not disturb bank officials unnecessarily.  Bank officials can have more productive time and focus of better output.  Marginal costing principle comes into use through encouraging customers' use of ATMs very extensively on more services (we could build better services basket innovatively).  Utility bill payment is one such use which is beneficial for the bank customer, utility and through nominal services - for the ATM owner also. 

The proposal must have come because customers used third party ATMs to make large cash withdrawals.  It is banks' own making.  Don't you think it is stupid not to allow easy cash transfer through ATMs?  You are willing to allow a person to withdraw cash but don't allow easy cash transfer!  If easy cash transfers are allowed, withdrawals come down drastically.  Easy transfers bring in lot of money through increased volume of transactions and bank loses absolutely nothing - not even the need to fill cash in an ATM frequently. 

Just imagine how life would be, if payments are made either through internet or through an ATM.  The entire business scene gets transformed.  Who is the culprit in this? Perhaps VISA/Mastercard (who charge excessively for such transfer? 

Free ATM use should be encouraged as it leads to more easy money access.Which futher means  the govt. regulators is facilitating seamless flow of money.Now that is possible if there is no penalty in withdrawing their own money.Banks in india are enjoying the growth story of india.Because of which there is lot of leveraging on the banks.Bank should rather wrk on thin margins to assist the growth in the indian economy.

Banks went for ATMs to save on property charges, man hours, their savings on   extra hours, rentals, electricity and various allowances they need to pay. Now, all banks, even idiot banks which had for branches can have their customers and increase customer numbers through third party ATMs.

If the Third party ATM allows for ECQ, transfer of amounts between banks and accounts, utility bill payments and lotsa stuff one can make overseas, it makes sense. I dont see why one needs to pay these irritating new expense.

I need to make one point nevertheless. Banks are buying ATM slots in very expensive locations paying expensive rentals, so today almost every shop-wallah guy is having a good time leasing out his   property to existing rental lease owner high extra on renewal, so the next thing you see is a brand new Bank ATM in that same area.  I dont see why customers have to pay for stupid bank personnel or management who can't negotiate rentals more realistical instead of creating price spirals.

I thought they had learnt their lessons once when Real Estate price spirals were created by giving Ninja loans ... Looks like laaton ke bhooth ab bhi ghoom rahein hain ! Waiting for the market to give them the boot.

Hi All,

I am little doubtful on saying Yes or No. But finally decided to say NO for banks charges on ATM use.  However I will give my opinion on both YES and NO but the final answer is NO.

MY ANSWER YES

The banks needs to spend lot of money for taking the premises on lease, interior, cash loading etc on the ATMs. In view of that they have right to charge to the customer to get relieved from the overhead / operating expense burden.

MY FINAL ANSWER NO [READ OUT THIS IS A INTERSTING STORY]

My final answer is NO because the burden on the banks is due to our bureaucratic approach. When the concept of ATM has been started then the ICICI Bank had taken a lead to capture the prominent site [with higher rentals]. During that time the ICICI Bank was covering up the expenses by putting the advertisement on the ATM screen [I think Cadbury chocolate advertisement was shown during that time]. So the ICICI Bank was pretty comfortable with prominent sites even at higher expenses. Needless to mention these prominent sites were much comfortable to customers also.

During that time the Nationalized bank were way behind in the race for putting up the ATM also they were not in position to capture the prominent site. So instead of thinking innovative, IBA [Indian Bank Association] has approched to RBI and complained about ICICI Bank - Saying ICICI Bank making the commercial use of ATM.

The stupid officials of RBI then supported IBA and asked the ICICI Bank to stop displaying the commercials on the ATM screen.

So my NO to this is because instead of charging the customers we should think innovative ways to cover up our costs. However this applied to almost all the businesses.

FINALLY

The sad part of this is, we have tradition of moving 2 step forward and 4 step backword and that is the same is happening in this case.

WHEN WE WILL IMPROVE OURSELF .........

Regards

Praveen 

Banks must find a way of catering this service to their customers.  But capping at Rs. 10,000 per transaction seems fine.  But if customers do get charged for using 3rd party ATM's, then, what service are we talking about?

If the RBI chose to accept the suggestions of Banks, why the hell they brought in the new law of accepting ATM cards in other banks ATMs free of charge.  Why the hell the Govt those to keep mum on this issue.

All election gimmick.  Now that election is over and it will another 4 and half years during such time, this can be reviewed, till such time, they will promise the people, there ends the matter,  It is high time, if such a change happens, we all must protest in a stronger terms.  Some of the ATMs, didn't accept other bank arm cards.  here itself there is a flaw. it is highly ideotic, if this law reverses.

The ATM use should not be charged. This facility has come to us when modern banking facilities have been provided to the customers, hence the service should be free of cost, as it is in developed countries.

ATM Transactions have made the citizens life more easy and effective. Earlier going to bank for withdrawing money was a time consuming process, moreover even banks overheads were increased as they had to employ adequate staff to take care of this. Now the load on personal banking has reduced as far as personal transactions are concerned, this actually brings the banks expenses down. I do not understand why do they want to downgrade themselves by all this.

I agree with the comment of Mr. Dobre !!

Why to pay extra.

why should a machine based transaction like ATM should be charged. it should be free- how can banks revert on their landmark decsion they made less than a year back. Instead ATM machine shall be upgraded to accept deposits also and make them 24*7.

Rather they should charge for personal banking, it takes more time, human resources, facilities, queue, space, headache etc. if one goes personally to banks to withdraw cash or to make simle transaction like cheque book request. personal banking shall be only for bit big/+ transactions that can not be handled by ATM or the person has a shortfall (illeterate., rural branch etc.)

yes i am in support of noooo

and y .. den mr . nitin has describe all the factors related to it in very nice way.

thanks for this debate

Customer of any bank should not be charged for using ATM of any other bank.

Instead, Bank can charge the other bank for the same. Why customer uses other ATMs? because he is not getting his bank's ATM. Banks should take care of this. customer should not be charged 'Penalty' for this.

According to me no, they should not charge on Free ATM use, people were really happy with no interchange fee levied upon them and were happy making transactions and in their choice of ATM's, it was not mandatory that one has to use the parent bank ATM only for transactions, this also had made life easy for the customer, and after all this now why are they again considering it to bring it back and why in the first place they removed it? or else to make both the parties satisfied here, the interchange fee which was being charged like 18-20 Rs per transaction, should be made less as suggested like 5 Rs per transaction and nothing else..in a way this free ATM use was helping the economy a lot where the money circulation was happening a lot and where people used to get access to their money at any point and this inturn created spending and now people will think twice before withdrawing money from other ATM's..

would like to see others view on this...