ATM players seek higher interchange to meet cost of new RBI regulations

The confederation of ATM Industry (CATMi) has been in talks with the regulators to raise interchange for the past three to four years

As the country struggles with cashless ATMs, ATM service providers seek higher interchange rates to meet the incremental cost of the recent RBI regulations. The ATM industry is no longer viable and most players are already incurring losses, said leading ATM players.

“The lower interchange has created a situation where it is better for banks that their customers go to another bank’s or ATM operator’s ATM to withdraw cash,” said Sanjeev Patel, chief executive officer, Tata Communication Payment Solutions. He added that the issuing banks need to bear the incremental cost of additional regulatory requirements as it is cost of customer