Starting August 1, the interchange fee that banks can charge on Automated Teller Machines (ATM) will see an increase of ₹2 following the Reserve Bank of India (RBI) order. In June, the central bank raised the interchange fee from ₹15 to ₹17, while for non-financial transactions the fee has been raised from ₹5 to ₹6. The fee is charged by banks to merchants processing payments through credit card or debit cards. It was set up under the chairmanship of the chief executive of the Indian Banks’ Association to review the entire gamut of ATM charges and fees with a particular focus on interchange structure for ATM transactions. The central bank had said these charges were allowed to be hiked owing to the increasing cost of ATM deployment and expenses towards the maintenance of ATM that banks incur.

Source: Hindustan Times July 21, 2021 09:45 UTC