New Delhi: The Reserve Bank of India on Tuesday constituted a six-member committee to review the ATM interchange fee structure with a "view to give a fillip to the ATM deployment in the unbanked areas".
The committee will be led by V G Kannan, Chief Executive, Indian Banks’ Association.
"Usage of Automated Teller Machines (ATMs) by the public has been growing significantly. There have, however, been persistent demands to change the ATM charges and fees. In order to address these, it has been decided to set up a Committee involving all stakeholders, under the chairmanship of the Chief Executive Officer, Indian Banks’ Association (IBA), to examine the entire gamut of ATM charges and fees," RBI said in a press statement.
The committee is expected to submit its recommendations within two months of its first meeting.
The terms of reference of the committee are as under:
1) To review the existing structures and patterns of costs, charges and interchange fees for ATM transactions.
2) To review the overall patterns of usage of ATMs by cardholders and assess the impact, if any, on charges and interchange fees.
3 To assess the entire gamut of costs in respect of the ATM ecosystem.
4) To make recommendations on the optimal charge/interchange fee structure and pattern.
The committee's announcement comes close in the heels of RBI deciding to eliminate levy on online payment modes -- Real Time Gross Settlement System (RTGS) and National Electronic Funds Transfer (NEFT) – a move that is expected to make such transactions cheaper.