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Our Bureau

Mumbai, March 10

Banks are free to decide on service charges to be levied for cash withdrawal using credit card in India and for withdrawal of money in ATMs abroad, said a notification from the Reserve Bank of India.

“The service charges for cash withdrawal with the use of credit cards and for withdrawals made in an ATM located abroad may be determined by the banks themselves,” said the notification.

The RBI had stipulated charges for using other banks’ ATMs in India. It had notified that banks should reduce service charges to Rs 20 per transaction carried out on other banks’ ATMs.

Banks would not be able to charge their customers more than Rs 20 for cash withdrawal from other banks’ ATMs effective March 31, 2008 and would also have to waive off all charges effective April 2009.

Transactions such as a simple balance enquiry from other banks’ ATMs have to be made free-of-cost with immediate effect. The RBI had notified that the charges levied on the customers vary from bank to bank and also vary according to the ATM network that is used for the transaction.

“A customer is usually not well aware of the charges that will be levied for a particular ATM transaction, while using an ATM of another bank. This generally discourages the customer from using the ATMs of other banks. It is, therefore, essential to ensure greater transparency,” the notification said.

More Stories on : Credit Cards & Debit Cards | RBI & Other Central Banks

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