The Reserve Bank of India (RBI) Thursday announced that it has set up a committee to look into ATM charges and fees. The apex bank has set up the panel under the chairmanship of CEO of Indian Banks' Association (IBA) which will submit its recommendations within two months of its first meeting.
The central bank took the decision to set up the committee in view of persistent demands to change the ATM charges and fees.
"RBI has been decided to set up a Committee involving all stakeholders, under the chairmanship of CEO Indian Banks' Association (IBA), to examine the entire gamut of ATM charges and fees. Committee to submit its recommendations within two months of its first meeting," RBI Governor Shaktikanta Das said while addressing the media in Mumbai.
The bank has also abolished its charges for NEFT and RTGS money transfer in order to promote digital transactions.
Meanwhile, the RBI has cut repo rate by 25 basis points, now at 5.75% from 6%, its third reduction this year, which it announced after its Monetary Policy Committee meeting Thursday. The rate cut seeks to arrest the slowdown in economic growth and boost consumer spending. Reverse repo rate and bank rate are djusted at 5.50 and 6.0% respectively.
The MPC also decided to change the stance of monetary policy from neutral to accommodative after the economy grew at its lowest pace over four years.
The official data released by the government last week showed that India's GDP tanked to 5.8% in the January-March quarter of FY 2018-19. This dragged the overall growth to a five-year low of 6.8% in FY 2018-19, throwing up a tough challenge for the Modi government 2.0.