Multiple challenges continue to ail the ATM interchange fee conundrum

Eight months after RBI raised ATM interchange charges, banks are still split on what next as Rs 2,000 notes vanish, costs climb, and withdrawal volumes soften

Eight months after the Reserve Bank of India allowed hiking ATM interchange charges - the fees one bank pays another for the use of the latter's ATM by an account holder of the former - by Rs 2 to Rs 19, industry experts are still undecided on where to go from here, given multiple headwinds.

 

While some suggest indexing the interchange fee to the amount being withdrawn by a customer, or even link it to the rising cost of maintaining an ATM network, others say banks could charge the customer a flat fee per withdrawal, which is a global practice.