IMGCAP(1)]
Rules designed to enable consumers to India to make more free ATM withdrawals have led financial institutions to bolster their data crunching and deployment strategies, according to issuers and local press reports. The rules, which took effect on 1 April, generally allow debit cardholders in India to withdraw cash and check account balances without having to pay surcharges (CardLine Global, 18 Aug.). Banks still can surcharge noncustomers who use their ATMs, providing an incentive for ATM-network expansion. The changes have led banks to study ATM-use patterns, according to India-based newspaper The Economic Times. "Yes, it is true that we are now looking to optimize our ATM operations in tune with the new ATM rule," an official with the Mumbai-based Bank of Baroda tells CardLine Global. "Under the new feeless regime, it has become important for us to set up ATMs from where we can get a proper mix of transactions." The bank has begun identifying locations its customers frequent and is moving machines out of locations less frequented, according to the official. The Reserve Bank of India, acting on a proposal from a bank trade group, recently said it would limit free ATM withdrawals from third-party machines (CardLine Global, 25 Sept.). Starting in October, the bank will limit free withdrawals to five per month. Consumers will get no free withdrawals for transactions worth more than 10,000 rupees (US$200 or 144 euros).
