ATM interchange fee: If you withdraw cash from an ATM machine, then this news may be useful for you. Now you may have to pay more charges if you withdraw money from the ATM after the fixed free limit.
ATM interchange fee: 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 an increase in interchange charges.
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 ensure more funding for the business. Stanley Johnson, Executive Director of ATM maker 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 makers 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 which is paid by the card issuing bank 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 compensate for the cost. Currently, customers are being charged up to Rs 21 after the transaction.
Currently, a minimum of five transactions in a month are free for savings account holders. At the same time, there are some banks whose three transactions are free at ATMs. After this, different types of charges are also levied from different bank ATMs.
