RBI says reviewing ATM outage circular after bank’s feedback

The Reserve Bank of India said that it was reviewing its recent scheme on ATM replenishment whereby the regulator put in place mechanisms to penalize lenders. The central bank deputy governor T Rani Shankar said that they had received inputs from banks and were in the process of reviewing it.

Shankar said’ “The idea behind the penalty of outages in ATMs was to ensure that these services are available as much as possible in areas where the attention to ATM is less, which is largely semi-urban areas. We have received various feedback, some positive while some raises concern.

In order to make the business more viable the RBI recently increased the interchange fee on ATM transactions from Rs 15 to Rs 17. ATM interchange is the charge paid by the bank that issues the card to the bank where the card is used to withdraw cash. In addition to this, the cap on fee that can be charged to the customer, which is capped at Rs 20 per transaction, was also increased to Rs 21.

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