Banks can now decide on the service charges

Reserve Bank of India (RBI) has given freedom to banks to decide on service charges for cash withdrawal using credit cards in India and for withdrawal of money in ATMs located abroad. As reported by Business Line, RBI in a notification said "The service charges for cash withdrawal with the use of credit cards and for withdrawals made in an ATM located abroad may be determined by the banks themselves."

RBI has notified that service charges have to be reduced to Rs. 20 per transaction which is carried out on other banks ATMs

From March 31, 2008 Banks would not be able to charge more than Rs. 20 for cash withdrawal from other banks and banks would also have to waive off the charges which will be effective from April 2009.

Balance inquiry from other bank's ATMs should be made free of cost with immediate effect.

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