Grahakjago (S.K.Virmani)©

With the invention of ATMs, the banking consumers have been facilitated with the ease of cash withdrawals or deposits of cash without waiting for banks to open or even one can withdraw the cash anytime anywhere. If you are moving far away from your base station, there is no need to carry the cash along with you during the journey. The cards can also be used for making payments against purchases. Even the money can also be transferred to others through ATM cards. In other words,  An ATM is a computerized machine that provides consumers of banks the facility of accessing their accounts for dispensing cash and to carry out other financial & non-financial transactions without the need to visit the bank branch.   In addition to dispensing cash, ATMs may offer many other services/facilities to consumers. Some of such services include: ·        A ccount Information ·          Cash Deposit ·      ...

Why Banks should charge transaction fee for use of ATM cards? Indian Banks Association is learnt to have requested RBI to allow banks to charge customers in the metros to pay for accessing ATMs of other banks but continue with the current cap of five free transactions a month for rural customers. The IBA also says that banks are loosing Rs. 400 crore a month because of the excess security requirement at 1.4 lak ATMs. IBA also need to consider following factors before they request the regulator RBI for allowing them to charge fee from the customers. 1. Use of ATMs have definitely reduced the burden on the banks as it has also resulted into reduction in manhours for dispensing cash from its cash counters. Indirectly it has facilitated for diversion of resources and increased business avenues and efficiency.  In fact some banks are charging annual card fee which also need to be withdrawn as the cost of operation has not increased. The technology always reduces the cost...