Interchange fee is the fee charged by the banks from the merchant processing the payment by credit card or debit card. According to the revised rules, customers will be able to do five free transactions every month from their bank’s ATM. Customers will be able to do three free ATM transactions in metro cities and five in non-metro cities using ATMs of other banks.
RBI had constituted 90 crore committee
These changes were made on the basis of the suggestions of a committee constituted by RBI in June 2019. The committee constituted under the chairmanship of VG Kannan, the then President of Indian Banks Association, had reviewed the ATM charges with special focus on the interchange structure of ATM transactions.
There were crore debit cards across the country as of March
RBI had said that along with the rising cost of installation of ATMs to banks and ATM maintenance expenses incurred by banks or white label ATM operators Considering the need to balance the convenience of the stakeholder entities and the convenience of the customer, the fee hike has been allowed. According to the report of news agency PTI, there were 1,15,605 onsite ATMs and 97,970 off-site teller machines and about 90 crore debit cards issued by various banks in the country as of March 31.