No. of views : (3249)
Is Reserve Bank planning to increase ATM charges?
Posted on: 24/Jun/2020 11:31:58 AM
A committee headed by the Chief Executive Officer of the Indian Banks Association, V. G. Kannan was formed regarding increasing the charges on ATM usage.
This committee submitted its report in October 2019. Accordingly, during the period April-June 2019, around 66% of the ATM transactions were less than Rs. 5,000. The Committee had recommended that the banks can charge for every withdrawal above Rs. 5,000.
Further, the committee recommended that for ATMs utilized in areas with a population of more than 10 Lakhs, each transaction on ATM should be charged from Rs. 15 to Rs. 17. For each cashes transaction, Rs. 5 to Rs. 7 may be charged.
In a similar mode, in ATMs located in areas under a population of 1 million (1o Lakhs), each ATM transaction can be charged Rs. 15 to Rs. 18 and for the cashless transaction, the charges will be Rs. 5 to Rs. 8 per transaction.
The average monthly expenses for the maintenance and operations of ATMs are about Rs. 75,000 to Rs. 80,000. Assuming that there are about 120 transactions each day, cash transaction expenses incurred would be Rs. 156 to Rs. 167. It is informed that presently, it stands at Rs. 1,250.
Post your requirement - We will connect with the right vendor or service provider
