In order to urge a rise in the interchange fee, the Confederation of ATM Industry (CATMI) has contacted the National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI).
The bank that issues the card pays the bank where the card is used to withdraw cash the interchange fee.
CATMI Contacts NPCI and RBI To Increase Interchange Fee
CATMI is requesting an increase in the interchange fee up to ₹23 per transaction.
Currently, banks in Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, and New Delhi provide savings bank account users with a minimum of five free transactions every month.
Three transactions are free at any ATM operated by any other bank.
According to AGS Transact Technologies’ executive director Stanley Johnson, the transfer rate was last raised two years ago.
CATMI has asked for an increase to ₹21, while some other ATM manufacturers have suggested raising the cost to ₹23.
Johnson also mentioned that although the previous fee hike took several years, there is a perception that everything is in order and that the cost rise will happen soon. As per Johnson, “The last time, it took several years to hike this but I feel everyone is aligned and it’s only a matter of time before the (fee) increase will happen.”
The interchange fee for ATM transactions increased to ₹17 in 2021 from ₹15.
The maximum amount that could be charged to the client per transaction was raised from ₹20 to ₹21 at that point.
Cash Deposit Via UPI Is Now Allowed In ATMs
As per the recent decision by the central bank of India, RBI, the UPI’s use for the cash deposits at Automated Teller Machines (ATMs) has been permitted.
This remarkable decision also poses questions on the relevance of debit cards in the future.
Once omnipresent and go-to method of one time, not so long ago, now struggles to keep up with its counterpart, UPI.
As per the data from the RBI, while the mobile payments have more than doubled over the past 3 years, the usage of debit cards for payments has remained stagnant whereas UPI has overshadowed the former.
