Reform of the ATM System - One Year On

The payments industry, with support from the Reserve Bank, introduced major reforms to the ATM system in March 2009. The reforms were designed to increase competition and efficiency in the ATM system. They have, by and large, been meeting their objectives. Cardholders have responded to clearer price signals by changing their pattern of ATM transactions, resulting in a reduction in total ATM fees paid. Flexibility in ATM pricing has helped to increase the number of ATMs, including in locations that might not have been financially viable in the past. At the same time, competition has driven financial institutions of all sizes to provide their cardholders with access to a wide network of ATMs free of direct charges.