What exactly is ATM interchange fee?
There are no free lunches in the financial services industry. Every time, a customer of a particular bank uses an ATM deployed by another bank, the former bank will have to pay a fee to the other bank. This is called an interchange fee. For years, private banks and white label ATM operators had been seeking an increase in the interchange fee to Rs 18 from Rs 15. On June 10, the Reserve Bank of India (RBI) raised the interchange fee on each financial transaction at an ATM to Rs 17 from Rs 15. The changes are based on the recommendations of a committee set up in June 2019 under the Indian Banks' Association.