The interchange fee -- paid by the card-issuing bank when a customer swipes at another bank's ATM, including at white-label ATMs -- may be raised to Rs 20 to Rs 23.
A representative of the Confederation of ATM Industry said ATM players were not consulted about the move and they received the news via media platforms.
Interchange fee is the amount charged by ATM operators for every transaction.
The new requirements include a shift to cassette swap system, mandate armed guards while transferring money as well as a host of other measures that would require huge investments.
179 million debit cards were issued during December 2016 to June 2018. A mere 2,000 ATMs were opened in the same period.
The cash crunch following demonetisation and transaction fees that do not cover costs are among the reasons why the sector is struggling.
At present, there is no cap on free transactions at own-bank ATMs, while customers can use other banks' machines up to five times a month without any extra cost.
Many PSBs are in the process of rationalisation of ATMs
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances