Banks to go for new ATM locations

I dont think its a good idea to charge the customers for ussing the ATM of other banks. Due to the ATM, any way bank has saved lot of cost which used to incure on salaries of staffs. Now as the most day to day cash related transactions are done on ATM's the staff can concentrate on the job of financing and investments and utilise the most valuable time on basic job of banking industry. Hence as per my opinion bank are already at profit so no need to charge the customers. Now regarding other banks value addition services by providing ATM's at most places to their customers. Many banks marketed their banks by establishing large ATM's network, as this was their main marketting policy they are objecting to this policy. But their are banks like SBI which has the largest network and are still welcomming this challenge. And above all this I think as India is still in gromming phase bank should encourage the customers to use ATMs, egovernence etc and when there will be right time think over the charging of customers.

bank can generate their additional business by putting ATM in rural sectors where people find inconvenient in withdrawal.

This is a topic worth lot of debate and discussion. 
Following are the two points on which there cannot be any compromise:
1. Any individual should be able to access money from any ATM (no restrictions on which bank's ATM or how many times or how much cash). I would say this is a progressive thinking. 
2. The banks definitely should find the ATM operations feasible. No doubt about it.

The question is how? I think the whole debate should be around this 'how' rather than contradicting the above two points. 

I feel customers should be charged if he utilises the other bank's ATMs, and the charges should be at the lowest possible level for the first couple of transactions, and they can be increased on slab basis be it as per number of accesses or be it on cash basis or a similar approach. This way, a customer in case of emergency can access any ATM; at the same time, he will think twice before using other bank's ATM. Banks also will have the incentives to start more convenient and more sophisticated ATMs (which can take care of all the advanced features mentioned in the posting). 

I would say the best part of this posting is thwoing some light on the 'analysis of ATM usage data'.

One thing is to be remembered that no biz will surview unless there is profit.  The technology has to go the public and it is to be used in most economical manner.  Off late many types of fee related incomes of the banks have come down drastically for eg:
1. Issuence of DD has reduced due to issue of at par cheues to all account holders.
2. There is talk why RTGS should not be made at free of cost.
3. Already outstation cheues clearence period has been reduced to 7 working days from 15 days.  which reduces the float balance to the bank and clearence fee is very nominal.
4. ATM usage across all banks are made as free of charges including balance inquiry, withdrawal etc. But the bank has to incur nothing less than 3-4 lakhs maintenance of each ATM when they don't get any income out of it definetly in future no bank will show any interest in opening of new ATM's.  

Till 2005 banks are use to earn lot of fee income through ATM through which the cost of maintenance of ATM was used to cover totally.  Now a days bank has incur money for maintenance of the ATM, certain over a period of time no. of ATM s of bank will down drastically.

Unlike in olden days bank as not getting float balance in CASA due to technology, which helps the account holders to transfer usage of the same.

In my opinion every account holder can use other bank ATM's upto a maxmium of 3 times with restricted cash with drawals i.e only meet his urgent needs.  It should not be free alternatively a separate body has to be started to service the general public by installing ATM's based on the usage the authority will charge the individual banks.  

RBI initially allowed to use ATMs of every bank by a customers without charges; reason : ATMs are successful only when Babnk is having total CBS, there after if 2 different banks are on CBS plateform then ATM transaction costs very less to them as its only Internet usage. Hence RBI said Banks cant charge their customer for this (Initially Banks use to charge Rs.25/Rs.20 as per their own rules No Standardization). But then, when it actually hit the ground its not only cost its a brand risk, think about a situation xyz bank has stablished ATM at some commercial place where in customer of all bank come & withdraw money, now dat ATM will always be running short of cash/Tech issues or some other issues. Customer will not think I am of ABC bank, he will just degrade XYZ Bank saying " This ATM always has issues." Though XYZ has been paying rent, serving customer and bearing all other costs.
Further another situation XYZ bank has got 100 ATMs but ABC has got only 50 ATMs and customer base of ABC is more in some locality then in this situation Banks will not be able to justify their costs.
RBI' intension:
1) Bettre customer service
2) Bank's should not levy high charges on customers to increase their income.
3) There should be a standard for all Banks.

Banks Perspective:
1) Brand at stake due to customers of other banks.
2) Inter Bank cost should be found based on number of ATMs a bank own.
3) Liquidity Management due to heavy withdrawl from ATMs

Apart from audio-guidance features, Bio metric ATMs are also planned to assist illiterate people. I feel this is an evolving process so these bottlenecks will be out once this is standarised, Banks will have to actually work out formula by which cost can be beared in participative manner by customer as well as service provider.

i dont agree with the idea given for reasons first , ATM gives customer the mobility , means he/she can withdraw money whenever and where ever the need is.second,  For a Bank it is very difficult to decide that which location it should instal   an ATM machine so bank doesn't have to pay inter bank fee to another bank for usage of ATM machine of another bank. If we work out the cost involved in instaling a new ATM machine it would be on very higher side. As it will include ATM machine cost , mothly Rental of location , electricity charges and other overhead exp. And if Bank work out the total mothly cost of a new location and then compare with inter bank fee paid on ATM of particular area , i beleive it would be worth paying inter bank fee.
Banks can avoid both these costs by offering some sort of benifit for using their ATM only for their own customers in form of Points or Rs. 5 on transaction over certain amount, this will induce customers to use their own bank's ATM until or unless there is an emergency.