Mexico City - Mexico's central bank announced new measures to make fees charged at automatic teller machines (ATMs) more transparent, in the latest move to limit banks, which critics say charge excessive rates and fees. The Bank of Mexico (Banxico) on said that beginning next year cash machines will have to clearly indicate to customers the total fees to be charged for specific transactions at the time they are made. In a written statement, Banxico said, "With the new regulation, before the operation is authorized, whether it be cash withdrawal or balance inquiry, the screen must display the total amount of fees that will be charged." Also, at ATMs owned by banks other than the customer's own bank, only one of the two institutions will be able to charge a fee. Currently, when Mexicans use ATMs at a bank other than their own, fees are often collected by both banks. The new regulations state that the ATM will have to display information to the client about which financial institution is carrying out the transaction and what fees it will collect. To make modifications at the more than 30,000 ATMs in Mexico, Banxico has given two deadlines: January 15, 2010 for transactions in which the cardholder uses their own bank, and April 30, 2010 for transactions in which a client uses a bank other than where they have their account. While the new rules should not have a major impact on overall fees banks earn from credit cards, pension funds or other lucrative businesses, they underscore the growing threat of regulation to Mexico's banks. In August, Mexico enacted other rules meant to inhibit unfair banking practices, including a ban on charging fees when clients close deposit accounts, cancel credit or debit cards or stop using Internet banking services. Mexico's financial industry is dominated by international giants including Citigroup, Spain's BBVA and Santander, HSBC, and Canada's Scotiabank. Politicians in Mexico often accuse the foreign-owned banks of charging higher fees and interest rates in Mexico than in their home countries.
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Business News | October 2009 
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