RBI sets up six-member committee to review ATM pricing


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.

"Exciting news! Elets Banking & Finance Post is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!

Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/

Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.