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- The Reserve Bank of India has constituted a high-level committee under IBA Chief V G Kannan to examine ATM charges and fees by banks.
- The six-member panel will review the existing structures and patterns of costs,charges and interchange fees for ATM transaction.
- The committee will also review the overall patterns of usage of ATMs by cardholders and assess the impact on charges and interchange fees.
- Besides,the committee will also assess the entire gamut of costs in respect of the ATM ecosystem and make recommendations on the optimal charge/interchange fee structure and pattern.
- An Automated Teller machine(ATM) is a computerized machine that provides the customers of banks the facility of accessing their accounts for dispensing cash and to carry out other financial & non-financial transactions without the need to visit a bank branch.
- The fee structure determines the fee consumers pay for using their ATM cards at ATMs of other banks.Normally,the issuing bank allows a certain number of ATM transactions for free.
- But customers are charged for using the ATMs of other banks for transactions beyond a certain number.The number varies from one issuing bank to another.
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