Jun 13, 2024 02:50 PM IST
Interchange fees is paid by customers for cash withdrawals at ATMs and CATMI is seeking to raise it to a maximum of ₹23 per transaction.
The Confederation of ATM Industry (CATMI) approached the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) to request an increase in the interchange fee. This is paid by customers for cash withdrawals at ATMs and CATMI is seeking to raise it to a maximum of ₹23 per transaction. Interchange fees is paid by the card-issuing bank to the bank where the card is used to withdraw cash.
Read more: Why liquor prices are rising in Gurugram due to Haryana’s latest excise policy
At present, banks offer savings bank account holders a minimum of five free transactions per month in Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and New Delhi. For any other bank’s ATM, three transactions are free.
Now catch your favourite game on Crickit. Anytime Anywhere. Find out how
Read more: OpenAI not being paid by Apple for ChatGPT integration into iOS: Report
Stanley Johnson, executive director of AGS Transact Technologies, an ATM manufacturer, told Economic Times that the last time the interchange rate was increased was two years ago. CATMI has requested an increase to ₹21 while some other ATM manufacturers have proposed raising the fee to ₹23, he said, adding, “The last time, it took several years to hike this but I feel everyone is aligned and it’s only a matter of time before the (fee) increase will happen.”
Read more: Mukesh Ambani- Elon Musk’s India satellite internet race heats up as Reliance clears hurdle
In 2021, the interchange fee on ATM transactions was raised from ₹15 to ₹17. At the time, the cap on fee that can be charged to the customer was increased from ₹20 to ₹21 per transaction.
