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Reserve Bank sets up panel to examine ATM charges, fees

The RBI had announced in the Second Bi-Monthly Monetary Policy for the year 2019-20 on June 6, 2019 that it will constitute a committee to review the ATM interchange fee structure (File/Express Photo by Amit Chakravarty)

The Reserve Bank of India (RBI) has constituted a committee, headed by VG Kannan, Chief Executive, Indian Banks Association, to examine the entire gamut of ATM charges and fees.

The other members of the committee include Dilip Asbe, CEO, 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, Sanjeev Patel, CEO, Tata Communications Payment Solutions.

The committee will review the existing structures and patterns of costs, charges and interchange fees for ATM transactions, the overall patterns of usage of ATMs by cardholders and assess the impact, if any, on charges and interchange fees, assess the entire gamut of costs in respect of the ATM ecosystem and make recommendations on the optimal charges and interchange fee structure and pattern. The committee will submit its report within two months of its first meeting.

The RBI had announced in the Second Bi-Monthly Monetary Policy for the year 2019-20 on June 6, 2019 that it will constitute a committee to review the ATM interchange fee structure with a view to give a fillip to the ATM deployment in the unbanked areas.