RBI forms committee to review ATM Interchange Fee Structure

Committee may submit its report within two months from the date of its first meeting

The Reserve Bank of India has constituted a Committee to examine the entire gamut of ATM charges and fees. The composition of the Committee is as under:

The Reserve Bank of India had announced in the Second Bi-Monthly Monetary Policy for the year 2019-20 on 6 June 2019 that it will constitute a Committee to Review the ATM Interchange Fee Structure with a view to give a fillip to the ATM deployment in the unbanked areas.

The committee is headed by V. G. Kannan, Chief Executive, Indian Banks' Association. The other member of the committee includes Dilip Asbe, Chief Executive Officer, National Payments Corporation of India, Giri Kumar Nair, Chief General Manager, State Bank of India, S Sampath Kumar Group Head, Liability Products, HDFC Bank, K Srinivas Director, Confederation of ATM Industry, Sanjeev Patel, Chief Executive Officer, Tata Communications Payment Solutions.

The Terms of Reference of the Committee are a) to review the existing structures and patterns of costs, charges and interchange fees for ATM transactions, b) to review the overall patterns of usage of ATMs by cardholders and assess the impact, if any, on charges and interchange fees, c) to assess the entire gamut of costs in respect of the ATM ecosystem, d) to make recommendations on the optimal charge/interchange fee structure and pattern and e) any other item relevant to the above.

The Committee may submit its report within two months from the date of its first meeting.

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