View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
January 16, 2014

NPCI forms six-bank panel to define cost structure of ATM transactions

The National Payment Corporation of India (NCPI), an umbrella institution for all retail payment systems in India, has formed a new panel containing six banks to define costs and charges for using the automated teller machines (ATMs).

By Verdict Staff

The National Payment Corporation of India (NCPI), an umbrella institution for all retail payment systems in India, has formed a new panel containing six banks to define costs and charges for using the automated teller machines (ATMs).

The panel includes State Bank of India, Bank of Baroda, Punjab National Bank, ICICI Bank, Axis Bank and HDFC Bank.

A person familiar with the matter was quoted by media sources as saying that currently the banks allow customers to perform five transactions at other bank ATMs, for which acquirer bank charges around INR12-15 ($0.19-$0.24) per transaction.

"Acquirer banks demand either a reduction of free transactions from current five or an increase in transaction cost," the person added.

NPCI CEO A P Hota said they have constituted a sub-committee of six banks which will look into the cost structure of ATM transactions, and also the reasonableness and quantum of increase in interchange charges which the customer’s bank (issuing bank) pays to the ATM owning bank (acquiring bank).

"We will address the issues relating to interchange for ATM transactions in the National Financial Switch network," Hota added.

The six-bank committee is expected to submit its report in a months’ time.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Electronic Payments International