Daily Current Affairs 2021 RBI constitutes high-level committee to review ATM pricing | Daily Current Affairs 2021

RBI constitutes high-level committee to review ATM pricing

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The Reserve Bank of India (RBI) has constituted a six-member committee under the chairmanship of VG Kannan, Chief Executive of Indian Banks’ Association (IBA) to review the ATM interchange fee structure.

The decision to form a committee to review ATM interchange fee structure was taken at the seventh bi-monthly meet of RBI’s Monetary Policy Committee increase ATM deployment in areas lacking in banking facilities.

The high level committee chaired by VG Kannan, will consist of members namely- Dilip Asbe (Chief Executive Officer of National Payments Corporation of India), Giri Kumar Nair (Chief General Manager of State Bank of India), S Sampath Kumar (Group Head of Liability Products, HDFC Bank), K Srinivas (Director of Confederation of ATM Industry) and Sanjeev Patel (Chief Executive Officer of Tata Communications Payment Solutions).

There are around 2 lakh ATMs in India. At end of April 2019, there were over 88.47 crore debit cards and 4.8 crore credit cards in function, and as per RBI data during April only 80.9 crore transactions were done through debit cards on ATM.

Over the years, uses of ATMs have grown significantly and there have been persistent demand of changing ATM charges and fees. Thus amid demands for reviewing the levies by bank, RBI constituted the high-level committee.

The committee will review the existing structures and patterns of costs, charges and interchange fees for ATM transactions. It will also review the overall patterns of usage of ATMs by cardholders and assess the impact (if any), on charges and interchange fees levied by banks.

The committee will also assess the range of costs in respect of the ATM ecosystem and make recommendations on the optimal charge orbinterchange fee structure and pattern.

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