How justified are the ATM charges that you pay? ATM user charges have been increased once again. This follows a 2019 report chaired by the CEO of the Indian Banks Association (IBA), which prepared the report, with members from banks and ATM service providers. Neither the regulator nor depositor associations were represented. How justified are these charges? After its first deployment in London in 1967, ATMs became popular fast. Bank management preferred the cheaper machines, which decongested branches, worked 24x7, and did not gossip, absent, or go on strike. Unions supported them as they facilitated five day weeks, shorter working hours, and shed drudgery and risk. Customers welcomed the anytime, anywhere convenience. ATM usage was free till late 1980s when some Las Vegas operators started charging non-customers. These became user charges, foreign fees, convenience fees, or interchange fees, with add-ons such as rejection fees. Banks raised these charges whenever interest income came down. Like the salami technique, skimming small amounts went unnoticed but brought in huge revenue when applied to millions of transactions.