RBI proposes to change the ATM transaction charges for other bank ATMs

The ATM charges for cards used in other bank ATMs are likely to increase. The Reserve Bank of India in its monetary policy announced on 6 June 2019, has proposed to review the ATM interchange fee structure. The ATM interchange fee structure provides the charges applicable for using ATMs of banks other than the issuing bank. 
 
A certain number of transactions from non-issuing bank’s ATM are allowed by the issuing bank but on exceeding a limit, all further transactions are charged. Such charges differ from one issuing bank to another.
 
At present, ICICI Bank offers three initial transactions in a month free of cost in six metro locations. In other locations, the number of free transactions offered is five. Subsequently, the charges levied by ICICI Bank are Rs 20 per financial transaction and Rs 8.50 per non-financial transaction as mentioned on bank’s website. 
 
State Bank of India offers same number of free transactions in metro and non-metro locations. Afterwards, the charges stand at Rs 20 plus GST for financial transaction and Rs 8 plus GST for non-financial transaction. 
 
In the Statement on Developmental and Regulatory prices, RBI has announced, " Usage of Automated Teller Machines (ATMs) by the public has been growing significantly. There have, however, been persistent demands to change the ATM charges and fees. In order to address these, it has been decided to set up a Committee involving all stakeholders, under the chairmanship of the Chief Executive Officer, Indian Banks' Association (IBA), to examine the entire gamut of ATM charges and fees. The Committee is expected to submit its recommendations within two months of its first meeting. The Composition and Terms of Reference of the Committee will be issued within a week." 
 
The Confederation of ATM industry (CATMI) has been making demands for restructuring the ATM charges with a view to keep a check on losses.
 

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Changes in Our Business Model
 
 
25th Sept 2020
 
Greetings from Moneylife Advisory Services
 
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
 
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
 
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
 
What remains the same:
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  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
 
What changes:
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Over the next few weeks our site and our communication to you will reflect these and other additional changes.
 
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
 
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Debashis Basu
Founder