ALERT ! ATM cash withdrawal to cost you more soon ; check details
ATM cash withdrawal to cost you more soon : ATM operators across India are actively seeking an increase in the interchange fee for cash withdrawals and have approached both the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) for support, according to the sources
The Confederation of ATM Industry (CATMI) is advocating for raising the interchange fee to a maximum of Rs 23 per transaction to enhance financial support for the industry.
Currently, banks provide savings bank account holders in major cities like Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and New Delhi with a minimum of five free transactions per month at their own ATMs.
The Executive Director of AGS Transact Technologies, Stanley Johnson mentioned that the interchange rate was last adjusted two years ago. He noted, "We have been in discussions with the RBI, and it seems they are inclined towards our proposal. CATMI has proposed an increase to Rs 21, while some other ATM operators have suggested Rs 23."
Johnson further added, "The previous fee adjustment took a considerable amount of time, but there now appears to be consensus, and approval for the fee hike is expected soon."
In 2021, the interchange fee for ATM transactions was raised from Rs 15 to Rs 17. Furthermore, the maximum fee that can be charged to customers per transaction was also increased from Rs 20 to Rs 21.
- With inputs from agencies
