Central Bank Official: Four Reasons for Banks to Charge on ATM

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Last updated at: (Beijing Time) Thursday, July 25, 2002

Central Bank Official: Four Reasons for Banks to Charge on ATM

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The Construction Bank of China (Beijing Branch) Last Friday broke conventional free of charge principle and charged its dragon-card users 2 yuan of procedure fee for each withdrawal on trans-bank ATMs.

The People's Bank of China official on July 24 explained that the charge was in keeping with related regulations on ATM management and therefore he listed following four reasons.

Highest charge should not be over 2 yuan

According to the official, firstly, colleting fee on the trans-bank money withdrawal on ATM is in accord with related regulations.

Articles issued by the People's Bank of China in January 1999, March 2000 and May 2001 respectively mentioned the charge issue.

Secondly, to have charge or not should conform to market principle. Each ATM costs 200,000 yuan, plus various fees for upkeep, it is a high cost. As the number of tans-bank money

withdrawals increases, banks fail to shoulder the high cost.

Thirdly, current focus is how much should banks collect, the central bank is discussing with other banks.

Fourthly, money withdrawal on different ATMs of foreign banks also needs users to pay a certain fee, which aims to provide users more benefit.

The central bank will not set unified standard

The official confessed that the charge has aroused great concerns among users in the way the bank did not go in for full publicity

neither it gives users time to adapt.

Would consumers accept the charge? A Shanghai investigation institution conducted a survey among 618 residents in Shanghai lately.

The survey shows that 55% of respondents accept the charge, 45% hold that it is unreasonable. In the meanwhile, the survey also indicates that Beijing residents' acceptance is higher than that of

Shanghai and Guangzhou up to 65.5%.

By PD Online Staff Li Yan

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