The Reserve Bank of India (RBI), on Monday, made it clear that all transactions via automated teller machines (ATMs) would be free of charges from April 1, 2009.
The central bank has also made it clear that banks are not supposed to increase their ATM charges from whatever they were on December 23.
Further, the RBI also said that banks which charge non-customers with more than Rs 20 for cash withdrawals will have to reduce the charges to a maximum of Rs 20 per transaction, with effect from March 31, 2008.
The central bank had placed an approach paper, relating to ATMs, on its website, and sought public comments for the same. These comments were received and analysed.
There would not be any charges incurred by any bank, from its customer, for the usage of its own ATMs for any purpose. There would not even be any charges incurred for the use of other bank ATMs for balance enquiries. These services would become free with immediate effect, stated the central bank, in its statement.
However, RBI has left it to banks to decide on the charges, to be incurred, while using credit cards for local cash withdrawal or cash withdrawal in foreign locations.
India has 32,342 ATMs as of December 31, 2007, said the RBI.