ATM Cash Withdrawal Hike: If you withdraw cash from ATM, you should be ready to pay more charges for usage in the coming days. You may have to pay more charges for withdrawing cash after the fixed free limit.
According to a newspaper report, ATM operators of India have approached RBI and NPCI to increase the interchange fee paid by customers on cash withdrawal.
If you withdraw cash from an ATM, you should be ready to pay higher charges for usage in the coming days. You may have to pay higher charges for withdrawing cash after the set free limit. According to a newspaper report, ATM operators in India have approached the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) to increase the interchange fee paid by customers on cash withdrawals.
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Demand for Rs 23 per transaction
According to the news, the Confederation of ATM Industry or CATMI wants this fee to be increased to a maximum of Rs 23 per transaction. An ATM manufacturer says that the interchange rate was increased two years ago. We are contacting the Reserve Bank and it seems that they are supporting it. We (CATMI) have requested to increase the fee to Rs 21. However, some other ATM manufacturers have demanded to increase it to Rs 23.
Interchange fee was increased in 2021
The ATM manufacturer says that last time, it took several years to increase the interchange fee, but this time it seems that everyone is unanimous and it is just a matter of time before the fee hike happens. According to the report, the Reserve Bank did not respond to an email seeking comment.
In the year 2021, the interchange fee on ATM transactions was increased from Rs 15 to Rs 17. ATM interchange is the fee paid by the card issuing bank to the bank where the card is used to withdraw cash. Also, the limit of fee charged from the customer was increased from Rs 20 to Rs 21 per transaction.
