Soon, you may have to pay more for cash withdrawals from ATMs: Report

Interchange fee is paid by the bank, which is issuing the card, to the lender where the card is being used to withdraw cash.

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In a move that could pinch your pockets more, ATM service providers are seeking a hike in interchange fee paid by customers for withdrawal of cash from ATMs, according to a report by Economic Times.

Interchange fee is paid by the bank, which is issuing the card, to the lender where the card is being used to withdraw cash.

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For this, the Confederation of ATM Industry (CATMI) has approached the Reserve Bank of India and the National Payments Corporation of India to request an increase in the charges to Rs 23 for every transaction, the Economic Times reported. This move will ensure more funding for the business, the ATM body said in the report.

In 2021, the fee was hiked from Rs 15 to Rs 17, and upper limit for the charge was set at Rs 21.

Currently, savings back account holders get five free transactions every month in 6 metro cities, including Mumbai, Delhi, Kolkata, and Bengaluru. For withdrawals in other bank ATMs, only three transactions with zero charges are allowed.

According to the report the central bank is supportive of the idea to increase the charges, ET said. Stanley Johnson, executive director of ATM manufacturer AGS Transact Technologies, said the company has been in touch with RBI, according to the newspaper.