PSU banks in the country are planning to go on massive ATM expansion after the RBI eased the ATM norms.

The leading banks in the industry have chalked out plans to open at least 15,300 ATMs across the country by the end of this fiscal. Five leading banks in State Bank Group are going to increase their presence through ATM expansion and thereby facilitate the retail consumers.

So far State Bank Group has the highest number of ATMs in the country. Presently the group has around 11,600 ATMs and with plans to set up 13,400 more, the total number would reach to 25,000 during the current fiscal.

An official from the group said, "Customer retention, particularly in the retail segment, necessitates setting up of large number of ATMs. Presently, State Bank Group has 11,600 ATMs pan-India. We plan to more than double this number this fiscal."

As per the latest norms, RBI has permitted banks to set up offsite ATMs without any prior approval from it. Also the central bank has allowed a free ATM usage of a third party from April 1st.

Now the customers can use third party's ATM without paying a charge but banks may charge each other Rs 18 per transaction for every third party ATM transaction. The free ATM usage is expected to increase the inter bank fee between the banks.