ATM interchange fee hike puts spotlight on micro-ATMs, financial inclusion

The gap of nearly Rs 4 could affect the business correspondent network, which derives nearly 40 per cent of its revenue from the micro-ATM network

The National Payments Corporation of India (NPCI) and the Reserve Bank of India (RBI) last week announced an increase in ATM interchange fee for cash withdrawals from Rs 17 to Rs 19, effective May 1, 2025. However, the pricing of micro-ATM transactions has not been increased, and stays at the earlier level of half-a-per cent of the ticket size or Rs 15, whichever is lower, raising questions about the continued viability of the business correspondents (BC) network, which typically uses the facility. 

Effectively, the gap between the ATM interchange for cash withdrawa ls over micro-ATM pricing has now increased to