Customers will need popular as the automatic teller machine (ATM) providers have demanded a rise in the interchange cost for ATM trades following recent strict rules by the central Bank.
Interchange charge is exactly what banks pay the other person for the utilization of other banking institutions’ ATMs by their customers.
Currently, all banks is charge a cost of Rs 15 for every single cash and Rs 5 for those non-cash trades from the other person for use of these ATMs by other banks customers — which is retrieved from the (user) customers — beyond the five lowest free transactions.
The Confederation of ATM Industry (CATMi) on Thursday asked banks and the regulator to look at a higher interchange rate as the Reserve Bank of India (RBI) directive is likely to press up their costs.
The CATMi has demanded that is going up by at least Rs 3-5 per exchange to permit the ATM providers to recuperate their costs.
The central bank has asked banks to put into practice certain minimum specifications in their agreements with the companies for cash management-related activities by July.
These include the very least fleet size of 300 specifically fabricated cash vans (vehicles), a drivers, two custodians with least two gunmen for security, each vehicle must be GPS-enabled and monitored live with geo-fencing mapping with additional sign of the nearest authorities stop during any disaster.
Another RBI round said banks should think about using lockable cassettes in their ATMs which will be swapped during cash replenishment.
Based on the providers, the swap of cassettes would need a significant investment as additional cassettes should be made available for everyone ATMs.
ATM providers have been lobbying for an increased interchange charge because the November 2016 demonetization of high-value banknotes as security charges and recalibration of machines because of the problem of new currency records resulted in additional charges for all banks.
Practically 50 percent of the ATMs are been able on a regular monthly charge and the rest of the derive from transactions.