Reserve bank of India guides banks to employ proper security guards at ATMs for the safety of the people. There are so much incidents( latest of Bangalore where a customer was attacked at ATM) of theft as well as misbehave at ATMs now a days.
This will surely increase the cost of bank. And banks wish to divert it to the customers. In this contrast, Indian Bank Association(IBA) suggests RBI that the limit of ATM transactions should be capped at 5 either of home bank ATM or other bank ATM and above this, there should be a fixed charge to the customers.
Presently, customer can use other bank ATM five times in a month and can use his own bank ATM freely with no charges.
However banks need to pay Rs. 15 plus taxes per transaction if a bank customer uses other bank ATM.
RBI has not guided banks to not levy charges using other bank ATM but this is in sake of reducing workload at branches and this decision was of banks and not of RBI.
There are many options available to customers like mobile banking and sms service where customers can check the account balance and needn't to go to the ATM or branch.
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