RBI constitutes high-level committee under IBA Chief Executive VG Kannan to review ATM charges

Mumbai: The Reserve Bank has constituted a high-level committee under IBA Chief Executive VG Kannan to examine ATM charges and fees by banks amid demands for reviewing the levies. The use of automated teller machines (ATMs) has been growing significantly and there have been persistent demands to change ATM charges and fees. The six-member panel will review the existing structures and patterns of costs, charges and interchange fees for ATM transactions, the RBI said Tuesday. [caption id=“attachment_4495283” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] The committee will also review the overall patterns of usage of ATMs by cardholders and assess the impact, if any, on charges and interchange fees. Besides, it will assess the entire gamut of costs in respect of the ATM ecosystem and make recommendations on the optimal charge/interchange fee structure and pattern. Dilip Asbe (CEO, NPCI), Giri Kumar Nair (CGM, SBI), S Sampath Kumar (Group Head, Liability Products, HDFC Bank), K Srinivas (Director, Confederation of ATM Industry) and Sanjeev Patel (CEO, Tata Communications Payment Solutions) are the members of the panel, headed by Kannan of Indian Bank’s Association (IBA). The committee has been asked to submit its report within two months from the date of its first meeting. There are about 2 lakh ATMs in the country. At end-April, there were about 88.47 crore debit cards and 4.8 crore credit cards. As per the latest RBI data, 80.9 crore transactions were done through debit cards on ATM during April.