ATM service providers are now seeking an increase in the interchange fee paid by customers for cash withdrawals from ATMs. The interchange fee is a fee paid by the bank that issues the card to the lender where the card is used to withdraw cash.
According to a report by the Economic Times, the Confederation of ATM Industry (CATMI) has approached the Reserve Bank of India and the National Payments Corporation of India to request an increase in the fee to Rs 23 per transaction.
This proposed increase in the interchange fee is aimed at providing more funding for the ATM business, as stated by the CATMI in the report. It is worth noting that in 2021, the fee was already increased from Rs 15 to Rs 17, with the upper limit set at Rs 21.
Currently, savings bank account holders in six metro cities, including Mumbai, Delhi, Kolkata, and Bengaluru, are entitled to five free transactions per month. However, for withdrawals made at ATMs of other banks, only three transactions with zero charges are allowed.
