Free Interbank ATM Transactions in India starting from April 2009

Posted in General on March 9th, 2009 by Ravi

I havent been banking with private banks for a little over a year now, since I opened my first SBI and UBI account in Chennai last year. These two are rock solid state owned banks.

I have always hated the other nationalized banks in the country and thats why opted for an account in a private bank around 7 years ago for its attractions such as core banking and internet banking.

Well, all banks have core banking these days, and all banks have internet banking. All banks have atms, but not all banks have atms everywhere.

I had an ATM very close to the guest house I stayed in Chamiers Road last year of Union bank and thats why I opened an account there. So when I had an account at Union Bank, I thought why not an account in SBI too.

When I returned to Pondicherry, I moved the SBI account to Pondicherry and the UBI account still remained there. I just love UBI. They give you free access to any ATMs in India, free cash deposit from any branch in India for upto 1 lac, and it credits NEFT transfers into your account the moment it reaches them from RBI. All other banks are slow.

Well, they won’t give you a flashy debit card such as the private banks give you, and dont even think of going shopping with that card. It sucks and the girls would roll on the floor and laugh at you if they see you handing it across the counter.

I have always hated in wasting money in service charges. But the UBI debit card has helped me in visiting almost all the huge bank atms in Chennai Bombay and Delhi. I too have got a chance to stand in the queue with the NRI boys at DCB, AmEx Barkleys and Grindlays Banks.

I thought this charge was going to be permanant. And I hate wasting money on service charges. Sending a check to my Chennai based credit card costs me Rs 5 for postage ( yes i hate couriers too), and NEFT costs me only Rs 5 in SBI (no internet banking in UBI :( )as well, but I would prefer to post it.

I didnt have any idea that the charges for withdrawal from any atm would be waived off by all banks from 1st of April. Well, this is a very good thing. It is business for all banks, but this would make the banks like ICICi to get more business as they have more well placed ATMs. But this would mean more business for the ATMs of the smaller banks too.

And this would mean that the smaller banks can now stop expanding their ATM netowwrks as their clients can withdraw money from any ATM, or enthusiastic banks can increase their number of ATMs even if they do not have enough accounts as they would get business anyways for other bank’s clients.

But doesnt this have complications? I know an area in Goa where there is only 1 ATM and the nearest ATM is 20 kms away in Panaji, and another 18 kms away at Mahpsa, and another is arond 12 kms away at Calangute. A HDFC atm that always has a very long queue, and I have seen people holding all sorts of cards waiting in the sun to withdraw cash. They hate to waste money on petrol, so they prefer to withdraw cash paying the service fee. But still people in there might consider withdrawing cash at Panaji or Mahpsa when they visit there if they are not too pressed for cash. But if the service fee is waived off, wouldnt that branch get too much of business? Other banks would loose interest for the money thats locked up in their teller machines while this bank’s ATM would be gaining loads of it.

RBI must have worked out soemthing. A centralized cash remittance system. All banks deposit your cash at SBI, and all banks who want cash for their ATMs get it from SBI. This way cash would be evenly distributed.

I would say it would be a good idea to waive off the service fee for the credit card processing machines at the merchant’s end so that everyone would pay their bills with their cards rather than wasting time at an ATM. Go, buy a beer, swipe your card and walk out. You dont have to wait for change or count notes.

Plastic money with your photo on it, so that no signature verification is required.

Or just embed the fucking card on your phone. The merchant bills you with bluetooth. You get a confirmation on phone, and you just press a button to authorize it. No cards nothing. And for a change, No black Money. Every single paisa is accounted for. At the end of the year, print your statement, and file your income tax return. no statements no balance sheets and no stupid auditors to deal with. And you do not have to take the trouble of locating your bank’s ATM and run to it to withdraw cash when you are buying your patio furniture covers.

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