The Reserve Bank of India has constituted a high-level committee under IBA Chief V G Kannan to examine ATM charges and fees by banks.
The six-member panel will review the existing structures and patterns of costs,charges and interchange fees for ATM transaction.
The committee will also review the overall patterns of usage of ATMs by cardholders and assess the impact on charges and interchange fees.
Besides,the committee will also assess the entire gamut of costs in respect of the ATM ecosystem and make recommendations on the optimal charge/interchange fee structure and pattern.
An Automated Teller machine(ATM) is a computerized machine that provides the customers of banks the facility of accessing their accounts for dispensing cash and to carry out other financial & non-financial transactions without the need to visit a bank branch.
The fee structure determines the fee consumers pay for using their ATM cards at ATMs of other banks.Normally,the issuing bank allows a certain number of ATM transactions for free.
But customers are charged for using the ATMs of other banks for transactions beyond a certain number.The number varies from one issuing bank to another.
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