New Delhi: Withdrawing money from ATMs may cost you more as ATM operators have approached regulators to hike their interchange fees. The Reserve Bank of India and payments company NPCI have received requests from ATM operators to raise the charges paid by bank customers for using ATM services.
What is interchange fee?
Interchange fee is a fee charged by ATM operators from customers for the use of credit card and debit card services. It is a convenience fee paid by the bank which issued a debit card to the bank at whose ATM the card is used to withdraw cash. This helps to keep the system running and acts as an incentive for banks, payments gateways and ATM operators to continue offering the service to the customer.NPCI fixes the interchange fee for ATM transactions.
Why are ATM operators seeking higher interchange fee?
The Confederation of ATM Industry (CATMI), the representative body of ATM operators, has sought for an increase in interchange fee to RS 23 per transaction. Some ATM operators have also sought for the fee to be raised to Rs 21 per transaction.
The last revision in ATM charges took place 2 years ago. It is only a matter of time before the new hike is introduced, the ET reported, citing Stanley Johnson, executive director, AGS Transact Technologies. ATM transaction charges were hiked to Rs 17 from Rs 15 earlier in 2021. The maximum ATM transaction charge ceiling was also raised to Rs 21 from Rs 20 in the previous round of hikes, according to the report.
How many free ATM transactions can you make?
ATM card users in 6 metro cities can offer a minimum of 5 free transactions per month. Up to 3 ATM transactions per month can be made for free at the ATMs of other banks. These free transactions are available in:
Bengaluru
Chennai
Hyderabad
Kolkata
Mumbai
New Delhi
ATM transactions may cost you more going forward since ATM operators are lobbying RBI and NPCI to raise the interchange fee. Know what is interchange and how it affects you. Personal Finance Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
