ATM Cash Withdrawals Set to Cost More: Operators Seek Hike in Interchange Fee

## ATM Cash Withdrawals Set to Cost More: Operators Seek Hike in Interchange Fee

Keywords: ATM, Cash Withdrawal, Interchange Fee, Operators, Cost, Hike

Consumers may soon face higher fees for withdrawing cash from ATMs as operators push for an increase in the “interchange fee,” the fee banks pay each other when a customer withdraws money from a non-bank ATM. This fee, currently capped at ₹15 per transaction, is set to be reviewed by the Reserve Bank of India (RBI).

ATM operators argue that the current fee is insufficient to cover the rising costs of maintaining and operating ATMs, including security, network infrastructure, and cash logistics. They claim the hike is necessary to ensure the sustainability of the ATM network and prevent a decline in the number of available ATMs.

However, consumer groups and financial experts express concern over the potential impact of the fee hike on consumers, particularly those who rely heavily on ATMs for their daily financial transactions. They argue that the increased cost will disproportionately burden lower-income individuals and could lead to a decline in the use of ATMs, potentially hindering financial inclusion efforts.

The RBI is expected to carefully consider the arguments of both sides before making a decision on the proposed fee hike. The outcome will have a significant impact on the cost of cash withdrawals and the accessibility of ATMs for consumers across the country.

It remains to be seen whether the RBI will approve the proposed hike and, if so, what the impact will be on consumers. The debate highlights the delicate balance between ensuring the financial viability of ATM operators and protecting the interests of consumers, particularly those who rely on ATMs for their financial needs.