The Reserve Bank of India (RBI) on June 6 said that it will constitute a committee to review the Automated Teller Machines (ATM) interchange fee structure.
In its statement on developmental and regulatory policies, the RBI said that a Committee involving all stakeholders, under the chairmanship of the Chief Executive Officer (CEO), Indian Banks’ Association (IBA), will examine the “entire gamut of ATM charges and fees”.
In June 2018, the Confederation of ATM Industry (CATMI) had sought regulatory intervention to correct the fee structure in the loss-making ATM deployer industry.
The committee is expected to submit its recommendations within two months of its first meeting, the RBI said. The composition and terms of reference of the committee will be issued within a week.
RBI’s Monetary Policy Committee (MPC) on June 6 delivered a third consecutive rate cut in five months in an effort to boost growth and revive the sluggish economic activity in the country.
The six-member committee voted in favour of a 25 basis points reduction in the key policy rate. One basis point is a hundredth of a percentage point. The RBI cut its key rates by 25 basis points, bringing the repo rate down to 5.75 percent from 6 percent.