The bank customers in India are in for some good times starting next year!

Beginning April 2009, people in India can use any bank’s ATMs for cash withdrawals and balance enquiries for free, instead of having to go to their own bank. This is going to be a great convenience for everyone, and kudos to Reserve Bank of India (RBI) for arm-twisting the banks into making this a reality!

I had been to India recently. New ATM machines have popped up almost everywhere, but it always seemed like there’s scope for a few more. It’s crazy, even more so during rush hours. You’d have to wait in line for 20-25 minutes at some of the ICICI bank ATMs in Hyderabad, and I’m sure it’s the same in most major cities. People still tend to use cash even for large transactions - and hence the rush at the ATMs, especially to withdraw money.

Now, will the same thing happen here in US anytime soon? The banks here reportedly make billions of dollars in ATM charges every year. Given the pressure on them to maintain their profits, in the backdrop of current mortgage mess, it seems unlikely to me. Oh well!