Why Banks should charge transaction fee for use of ATM cards?
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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 In fact some banks are charging annual card fee which also need to be withdrawn as the cost of operation has not increased.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...