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RBI panel under VG Kannan to review ATM charges

BusinessToday.In     June 11, 2019

The Reserve Bank of India has constituted a six-member committee to review the ATM interchange fee structure. VG Kannan, Chief Executive Officer of the Indian Banks' Association, will lead the review panel.

Dilip Asbe, Chief Executive Officer, 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; and Sanjeev Patel, Chief Executive Officer, Tata Communications Payment Solutions have been named as the members of the review committee.

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The decision to form a committee tp review ATM interchange fee structure was taken at the seventh bi-monthly meet of RBI's Monetary Policy Committee increase ATM deployment in areas lacking in banking facilities.

The VG Kannan-led committee will examine the entire gamut of ATM charges and fees. To this end, the panel 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.

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According to RBI guidelines, the savings bank account holders can make five free transactions in a calendar month after which they will be charged a particular amount for each transaction that varies from bank to bank.

Recently, the central bank has also abolished its charges for NEFT and RTGS money transfer systems in order to promote digital transactions.

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