Shared ATMs are not a free visa for users
Cash withdrawals are possible from shared ATMs as banks hook up to a common network. But access charges can vary depending on the tie-ups.
By Naveena Israni, TNN |
Have you faced a situation when you’re in urgent need of cash, but can’t locate the ATM of your bank? So what do you do? Just head for the ATM of any other bank and use your debit/credit card to access your original bank account.
This is possible because most banks have tie-ups with other banks or are members of a common network, which permits inter-bank ATM transactions. But the charges vary depending on the tie-ups your bank has entered into and the network it is part of.
ATM networks
Most banks are members of multilateral shared ATM networks like Cashnet (which includes Visa and MasterCard), National Financial Switch (NFS), Cirrus or BANCS. One bank can be part of more than one network, but all ATMs of a bank may not be on the same network.
All cards routed through any of these networks can be used on the corresponding network of another bank. So a Visa debit card of HDFC Bank can be used at Visa ATM of a ICICI Bank and vice versa. So, before using your card, check for the network logo on your card and match it with the logo outside the ATM.
Partner banks
Banks also have tie-ups with specific banks for using their ATMs for a fee. HDFC Bank has bilateral tie-ups with SBI, Andhra Bank and American Express Bank. ABN Amro has a tie-up with UTI Bank, while American Express has partnered with HDFC and IDBI Bank. SBI has bilateral sharing agreements with HDFC Bank, Andhra Bank, Canara Bank, BoI, Indian Bank, IndusInd Bank, Uco Bank, UTI Bank, UBI, PNB etc.
Charges
Though you can use your card on ATMs of other banks, transaction charges are levied by banks issuing the card. Charges are higher if you transact at foreign ATMs than at domestic ATMs, and if you use credit card instead of debit card. Also, higher charges are levied for using ATMs of non-partner banks that share a common network, than for partner banks. Fees for cash withdrawal are higher than that for balance enquiry.
▪ Charges for using partner bank ATMs: If you use HDFC Bank card at ATMs of SBI or Andhra Bank, you’re charged Rs 20 for cash withdrawal and Rs 10 for balance enquiry. But some banks let you transact at partner ATMs free of cost — there are no charges for using Citibank card at partner bank ATMs and you can use ABN Amro card to withdraw cash from UTI ATMs free of cost. SBI allows free transactions at ATMs of State Bank group, but charges Rs 25 and Rs 12 for cash withdrawal and balance enquiry, respectively, at banks with which it has bilateral tie-ups
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▪ Charges for using ATMs of non-partner banks sharing a common network: For Citibank, you’re charged Rs 35 per transaction on Cashnet network and Rs 70 per transaction (first two withdrawals per month at Rs 50) on Cirrus. Standard Chartered offers four free transactions per month on Visa ATMs; above this, it charges Rs 50 per cash withdrawal and Rs 20 per balance enquiry. Some banks levy no charge if customers maintain a minimum quarterly average balance. ICICI Bank joint GM, Sanjay Tikotekar, says customers who maintain minimum quarterly average balance of Rs 10,000 can use Visa/NFS ATMs free of cost.
▪ Charges based on card membership tier: In some cases, charges are waived for privilege or gold debit card members.
▪ Charges for using credit cards: The above charges are for debit cards. But if you use credit card at another bank’s ATM, an additional charge is levied. “This covers the cost of funds the ATM has dispensed to card holders,” says HDFC Bank executive VP (retail banking) Rahul Bhagat. According to CBoP marketing director Yateesh Srivastava, charges are higher for credit cards because the issuing bank charges cash withdrawal charge, while the network charges interchange fee.
General tips
So, what is the most efficient way to use ATMs of other banks? First, make sure you have sufficient balance in your account. Banks can charge as much as Rs 25 for non-completion of transaction due to insufficient balance. Second, check the ATM network and match it with the card network. “It is best to use ‘self’ ATM network. If you are forced to use another bank’s ATM, restrict the number of transactions,” says Mr Srivastava.
Mr Bhagat adds, “Plan ATM withdrawals and know ATM sharing tie-ups of your bank, as well as applicable charges.” StanChart Bank GM (shared distribution), Sameer Subberwal, says banks should consider tie-ups for preferential rate with those banks which acquire most of the transactions, to lower costs.
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