Withdrawing money from ATMs can be costly in the coming days. From the Reserve Bank of India (RBI), the ATM Operators Association has sought to increase the interchange fee.
Operators argue that the fee should be increased because the cost of operating the ATM is increasing due to adherence to RBI’s security standards.
If a customer withdraws money from the ATM of another bank and due to lack of sufficient balance, the transaction fails, then it is charged.
RBI has fixed the maximum limit of free transactions at Rs 5 per customer, Rs 15 per interchange fee. This amount is not enough for companies to run the business, according to the ATM Industry or Confederation of Indian Industry (CATMI).
According to a letter sent to a senior RBI official on February 13, the companies continue to suffer losses and are impacting the ATM business, slowing down the pace of setting up new ATMs.