The Reserve Bank of India (RBI) has constituted a committee of experts to reduce prices for customers on ATM transactions, with a broader objective to improve rural penetration of teller machines.
The six-member committee will be headed by Indian Banks’ Association chief executive V G Kannan with a specific mandate to review the existing interchange fee and pricing structures, RBI said in a statement.
The Reserve Bank of India has constituted a Committee to examine the entire gamut of ATM charges and fees. The Committee may submit its report within two months from the date of its first meeting, the central bank said.
The five members of the committee are: Dilip Asbe, Chief Executive Officer, National Payments Corporation of India; Giri Kumar Nair, Chief General Manager, State Bank of India; S Sampath Kumar, Group Head, Liability Products, HDFC Bank; K Srinivas, Director, Confederation of ATM Industry; and Sanjeev Patel, Chief Executive Officer, Tata Communications Payment Solutions.
“To deal with the increased cost of operating ATMs, banks and white-label ATM operators (WLAOs) wanting the RBI to raise ATM interchange fee from Rs 15 to Rs 18 for cash withdrawals and card-to-card fund transfers, and from Rs 5 to Rs 8 for other non-financial transactions,” RBI said in a statement.
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