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ATM Interchange Fees: If you withdraw cash from an ATM machine, then this news may be useful for you. Now you may have to pay more charges for withdrawing money from ATM after the fixed free limit. Actually, the ATM operators of the country have contacted the Reserve Bank of India (RBI) and the National Payment Corporation of India (NPCI). ATM operators are demanding to increase the interchange charge.
What is the demand?
According to the Economic Times report, the Confederation of ATM Industry (CATMI) demands that the interchange fee be increased to a maximum of Rs 23 per transaction. This will help in ensuring more funding for the business. Stanley Johnson, Executive Director of ATM manufacturing company AGS Transact Technologies, said – The interchange rate was increased two years ago. We are contacting RBI and it seems that they support the increase. We i.e. CATMI have requested to increase the charge to Rs 21. At the same time, some other ATM manufacturing companies have demanded to increase it to Rs 23. However, nothing has been said officially by RBI in this regard. According to an ATM manufacturer, the increase in interchange charge is a decision taken by NPCI as the rate is fixed by them.
There was an increase in 2021
Let us tell you that in the year 2021, the interchange charge on ATM transactions was increased from Rs 15 to Rs 17. ATM interchange is the charge that the card issuing bank pays to the bank where the card is used to withdraw cash. Due to the high interchange charge, banks will be able to increase the charge taken from customers after free transactions to cover the cost. Currently, customers are being charged up to Rs 21 after the transaction.
At present, at least five transactions are free in a month for savings account holders. However, there are some banks whose ATMs allow three transactions to be free. After this, different types of charges are levied at ATMs of different banks.
