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ATM use to be limited; charges for ATM operation up!
Posted on: 24/Feb/2020 10:37:15 AM
Restriction for use of ATMs throughout the country is all set to be imposed again! With this, the prevailing facility of using ATM any number of times is being curtailed! Further, the charges for ATM use is being revised upwards!
Earlier, there was a severe restriction imposed on withdrawing money from ATM. In fact, in case the number of uses of ATM exceeds the fixed limit, additional charges were being imposed. With this, the public was put to great hardship!
Subsequently, the practise of charging for ATM use was stopped. Further, the restriction on the number of users was withdrawn, making way for unlimited use of ATMs.
However, some issues have arisen again in this regard. The Federation of organisations which undertake the responsibility of filling the ATMs with cash is constrained to fill the ATMs with cash much more frequently as the usage is heavy! Also, the Federation incurs excess expenditure on the safety of the ATMs as well! Thus, the federation had demanded an increase in the charges for this service.
As per the prevailing conditions, the concerned banks need to pay Rs. 15 to the federation each time when ATM is used. The federation has appealed that this charge must be revised upwards.
Subsequently, the Reserve Bank of India set up a special high-level committee for analyzing this issue. This committee conducted the analysis and presented some recommendations last December.
Recommendations
- When money is withdrawn from ATMs located in urban areas with a population of more than 10 lakhs, Rs. 17 can be paid for each usage.
- A restriction must be imposed on the extent of ATM use in a month. It should be only 3 times in a month to use ATMs. It may be noted that presently, the restriction is 5 times in a month.
- Rs. 18 for each user may be paid when using ATMs installed in small towns and Panchayats. The limit on ATM use may be restricted to 6 times in a month in these areas.
However, the Reserve Bank of India has not taken any action after the receipt of the above recommendations. It is still considering the issue. It has been informed by the official circle that a decision may be taken shortly!
No new ATMs!
There are 2,27,000 ATMs throughout the country. Out of these, only 21,300 ATMs are operated by private ATM agencies. The rest of the ATMs are operated by the banks on their own.
Only during the year 2018, the banks in a healthy competition with each other in installing more ATMs! However, as the maintenance charges for ATMs are rather high, the banks stopped installing ATMs on their own.
Number of ATMs in India lesser as compared to other countries
In developed countries such as China, USA, Britain, Brazil, and South Africa, there is 1 ATM per 2,000 persons. However, in India, with a population of 130 Crores, presently, there is 1 ATM per 5,919 persons! As regards the rural areas, only 1 ATM out of every 5 ATMs set up throughout the country is located here. Further, as regards the private sector ATMs, only 1 out of 10 ATMs installed in the country are in rural areas.
