Last week the RBI suggested that the customers of a bank be allowed free use of ATMs of other banks, including for cash withdrawal, from April 1, 2009.
The regulator has also said that the balance inquiries should be made free-of-cost to immediate effect, and for withdrawal from ATMs of other banks, it wants the banks to reduce the charge to Rs 20 per transaction from April 1, 2008.
"I think it's a right move, within the next couple of years all the settlements will be done online, bringing down cost considerably, so why charge the customers for that," said SK Goel, chairman and managing director, UCO Bank.
He also said the inter-linkage of the ATMs will bring about technological synergy, so the charges are bound to decline. Currently, the bank has 325 ATMs and is looking to add another 125 by the end of this financial year. Meanwhile PK Gupta, Chairman and managing director, United Bank of India (UBI), said although the bank had an ATM-sharing arrangement with 12 other banks under the Cashtree network, a similar concept was welcome with all the other banks.
"We have a sort of club situation (Cashtree) right now, and there is no harm in trying a similar concept in all the banks, but the regulator should ensure value and reciprocity for all the banks, particularly for the big banks," he added.
UBI has 157 ATMs of its own but the customers of the bank have an access to over 3,500 ATMs by the virtue of Cashtree arrangement.
On a similar note, AC Mahajan, chairman and managing director, Allahabad Bank, said as there were sufficient number of ATMs in the country, the move would be a good one.
However, he added, the RBI should come of with some sort of directives on the minimum number of ATMs a bank should have, so that the move did not discourage banks from opening new ATM counters.
"The customers should not be charged for transactions but the regulator must come up with certain guidelines which would act as an incentive for opening ATMs," Mahajan explained.
The bank has 208 ATMs and is planning to add another 100 by the end of this financial year.