Interbank Fund Transfers at ATM Center
Account holders of Union Bank of India, Canara Bank, Andhra Bank, Saraswat Co-operative Bank and YES Bank have some reason to cheer up because now they can make an interbank fund transfer without visiting the bank. All these banks have come together to allow interbank fund transfer at ATM centers through Debit Cards.
At present to transfer fund from your bank account to a customer of another bank, either you need to visit bank branch or do it online but both takes considerable time to transfer fund but with this card-to-card transfer facility one can accomplish this task within few minutes.
Suppose you have a bank account in YES bank and want to transfer funds to a customer holding account in Canara Bank, you just have to walk to your nearest ATM center and swipe your debit card into the ATM machine. After that you need to enter the amount and the 16 digit debit card number of the person you wishes to transfer funds. As soon as you hit the confirm button, the transfer of fund will immediately take place by debiting your account and crediting the account of that other person.
Initially, the maximum amount which can be transferred is Rs.5,000 a day with a maximum of Rs.25,000 in a month.
This interbank fund transfer facility will lower the operational cost of the banks because the cost per transaction if a customer visits a bank branch comes to Rs.40; this can drop to Rs.10 to Rs.12 if the transaction is carried out at an ATM.
Point to ponder is that this move has come out after the RBI has allowed banks to charge nominal fee for ATM transaction above an allowed limit of 5 per month. So we can say with this interbank fund transfer facility at ATM Center may cut down the operational cost of the Banks but may put additional burden onto your pocket.