Now you can use ATM of any banks to withdraw cash from the account belongs to any other bank. As per a new directive by the Reserve Bank of India (RBI), banks are asked to remove any fee for cash withdrawals using ATM and debit cards issued by other banks. The new arrangement will come into effect from April 1st onwards.

Meanwhile, banks can still charge extra for services such as cash withdrawal with the use of credit cards and at ATMs located outside India. In this context, some banks are planning to expand their ATM network. Oriental Bank of Commerce looks to increase its ATM base and will open 60 new ATMs across the country to facilitate smooth cash withdrawal.

On March 10 last year, RBI had brought out guidelines to limit the fee charged by banks for using their ATMs by clients of other lenders to Rs 20. It had also allowed the use of ATM, for purposes like balance enquiry, free of any charge. According to the central bank, this was to ensure greater transparency and facilitating usage of any ATM installed within the country by customers without shelling out more.

At present, banks charge Rs 20 per transaction when a customer uses the cash machine of any bank other than the one in which he/she has an account with.

Source: Siliconindia.com