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NPCI cuts ATM switch charges by 10%

Foray into credit cards from Jan 2016

BS Reporter  |  Mumbai 

ATM Machine

National Payments Corporation of India (NPCI) has cut the switching fee for ATM transactions by 10 per cent to 45 paise on the surge in transaction volumes to 270 million per month from 80 million per month four years ago. The new rate is effective May 1. In 2010, NPCI had reduced the switching fee by half to 50 paisa per transaction. State Bank of India executives said the bank had asked for a steeper cut in fees, since it gave substantial quantum of transactions. There is a scope for the fee to go down further in view of the surging volumes. NPCI managing director and chief executive A P Hota said a company can certainly look at revising rates (downwards) further depending on further growth in volumes and saving on costs. Switching fee is charged by the NPCI for routing ATM transactions through connectivity between banks’ switches. This enables customers to use any ATM of a connected bank. ALSO READ: Banks cap upper limit for withdrawals at micro ATMs Broadening its product portfolio, NPCI would also launch credit cards from January 2016.

At present the company only has presence in debit card space. It would take its RuPay card international in July. It is collaborating Discover Financial Services for these forays. SBI in association with NPCI has launched State Bank RuPay Platinum Debit Card. It will target the affluent segment by offering a range of value-added benefits including, five per cent cash-back on utility bill payments and up to one per cent fuel surcharge waiver and personal accidental death and permanent total disability insurance cover of Rs 2 lakh. Yet to decide on roping in partner for credit cards biz: SBI

Country's largest commercial bank State Bank of India today said it is yet to decide to bring in new partner for its credit cards business after its long-time associate GE Capital decided to exit financial business globally.

Bank will decide whether do it alone or bring in some other strategic partner, SBI Chairman Arundhati Bhattacharya told reporters.

Bhattacharya said Bank will see what is GE's plan exactly. There was no big hurry to decide on future course of action. GE Capital is very clear about it that they are not here to destroy value.

SBI Cards chief executive Vijay Jasuja had said last month that the company has started exercise for a possible new investor or a public offer.

First Published: Fri, May 08 2015. 00:32 IST