Micro-ATM operators seek higher transaction fees to match legacy ATMs

Micro-ATM operators have sought a revision in transaction fees, urging the government to align their payouts with those of legacy ATMs amid rising volumes and decade-old stagnant pricing

The move to allow cash withdrawals through micro-ATMs via the Unified Payments Interface (UPI) has once again brought the spotlight back on the pricing of such transactions vis-à-vis legacy ATMs. The issue has been raised with the Department of Financial Services, with micro-ATM players seeking parity in treatment with traditional ATMs.

 

Sources in both the Business Correspondent Resource Council and the Business Correspondent Forum of India said the government should consider a 50-basis-point increase in micro-ATM transaction rates. Ideally, a comprehensive costing exercise should be undertaken to determine the optimal transaction fee that ensures the sustainability of banking agents.

 

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