EASY ACCESS TO MONEY - Use any ATM free-of-cost from April, says RBI

[Kalyan]

EASY ACCESS TO MONEY - Use any ATM free-of-cost from April, says RBI

No fooling, this. Come April 1, and you can use any ATM of any bank for anything from inquiries to cash withdrawals, free of cost.

    Reserve Bank of India regional director F R Joseph told TOI that the RBI had given banks instructions in this regard. At present banks charge Rs 20 per transaction. "RBI has mandated that the ATMs should have unrestricted access for customers across banks.

Be it the customer of a nationalised bank or a private bank, he or she will be able to access the bank account from any ATM without any additional charge. The RBI has provided the technology platform for this. This will also bring down the need for keeping large amounts of cash with oneself,'' Joseph said.

    He said banks can levy charges determined by themselves for withdrawals using credit cards and from ATMs located overseas. In a circular issued to all commercials banks, the RBI said that customers should not be charged for even cash withdrawals at other bank ATMs with effect from April 1, 2009. It said a bank cannot charge its own customers for any ATM usage, with immediate effect. The guidelines are being issued to encourage customers to use ATM cards and ensure greater transparency in banking operations.

    On the RBI's fencing measures, he said: "About 15 major banks in the US have gone bust in a year, but there's none that faced a crisis in India. Since 1961, not one scheduled commercial bank in the country has failed.

Thecredit should go to the RBI. Even in recent times, when a bank was in an intractable situation, it was merged with another strong bank to ensure total depositor protection. This is primarily because of the RBI's key role as a regulator and supervisor of the financial system." It is also to the RBI's credit that it has built up $ 246 billion in forex reserves, up from $ 1 billion since 1991.

    This has provided the necessary cushion to the economy in difficult times like these.

    Another focus for the RBI is financial inclusion which facilitates inclusive growth. "The poor depend on informal sources for borrowing money. We have encouraged the banks to focus on this segment. In Tamil Nadu and Puducherry, in the last two to three years, more than 4 lakh new deposit accounts have been opened," he says.

source : times of india