New Delhi: 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. Customers pay this fee for cash withdrawals at ATMs and CATMI wants to raise it to a maximum of Rs 23 per transaction. The card-issuing bank pays the interchange fees to the bank where the card is used to withdraw cash.
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.
Stanley Johnson, executive director of AGS Transact Technologies, an ATM manufacturer, told the Economic Times that the last time the interchange rate was increased was two years ago. CATMI has requested an increase to Rs 21 while some other ATM manufacturers have proposed raising the fee to Rs 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.”
In 2021, the interchange fee on ATM transactions was raised from Rs 15 to Rs 17. At the time, the cap on fee that can be charged to the customer was increased from Rs 20 to Rs 21 per transaction.
