ATM Operators Demand Hike in Interchange Fee From RBI
The card-issuing bank pays interchange fees to the bank from which the card is used to withdraw cash
The Confederation of ATM Industry (CATMI) has petitioned the Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) to advocate for an increase in the interchange fee.
CATMI proposes raising the ATM withdrawal fee to a maximum of Rs 23 per transaction. The card-issuing bank pays interchange fees to the bank from which the card is used to withdraw cash.
Banks levy a fee for cash and non-cash ATM transactions if a customer surpasses the free monthly limit.
Currently, if the free monthly ATM withdrawal limit is exceeded, the bank charges an additional Rs 21 per transaction, which customers must pay.
