Atm Fees

Customers providing benefit to banks through practise of ATM and EDC machines Ashish Das1 Department of Mathematics, Indian Institute of Technology Bombay, Mumbai-400076, India and Department of Statistics, The University of Akron, Akron, Ohio-44325, USA August 23, 2009 Abstract The usage of ATM and EDC machines by the customers is a blessing in camo for banks. The paper attempts to argue on how imposition of a earnings for third party ATM transactions serves to be counterproductive to the banking system and makes the payment system inefficient. IBA seems to take steps (keeping banks in the forefront) to generate additional income for the banks by an easy path of levying fees which is against consumer interest. run batted ins approach had been to put much(prenominal) issues, after its sign analysis, in the public domain for public comments. Thereafter, a wakeless decision, keeping broader public interests in mind, is taken. 1. Introduction On celestial latitude 24, 2007, Reserve Bank of India (RBI) came out with an approach paper on Fair Pricing and Enhanced Access of Bank ATMs. Subsequently, on March 10, 2008, RBI issued a direction to all banks qualification use of other bank ATMs for balance enquiries and cash withdrawals resign effective April 1, 2009.

It now appears that Indian Banks Association (IBA) may be taking this with a pinch of salt since it wants RBI to retrospect its decision on providing free ATM usage. Needless to say, with IBAs stated vision to work proactively for the growth of a healthy, lord and preliminary looking, banking and financial services industry, in a mien consistent with public good, it remains to be seen how such a move by IBA is consistent with being forward looking and for public good. Most of the banks have carried out a transition from only ATM cards to ATM-cum-Debit cards. In victimize we call such cards as Debit cards. In India we have over 1464 lakh (as of June 2009) debit cards issued by banks (excluding those withdrawn/blocked). By March 2008 end, the... If you want to get a full essay, order it on our website: Orderessay

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