Charges on ATM cash withdrawal likely to increase; operators write letter to RBI

Withdrawing cash from bank ATM soon to become costly as India’s ATM operators’ association has written to the Reserve Bank of India (RBI) seeking a hike in the interchange fee paid by customers. In the letter, ATM operators told RBI that their businesses will ‘bleed’.

According to ET reports, the RBI’s increased compliance standards on security and maintenance has increased the cost of running the teller machines without a corresponding increase in the revenues these companies make through fees accrued.

At present, the interchange fee has been set by RBI at Rs.15 per transaction with a cap of five free transactions per customer.