NPCI cuts inter-bank ATM transaction fees by 10%
The National Payments Corporation of India (NPCI) on Friday announced a 10 percent or 5 paise reduction in charges for transactions on its inter-bank ATM network.
Mumbai: The National Payments Corporation of India (NPCI) on Friday announced a 10 percent or 5 paise reduction in charges for transactions on its inter-bank ATM network.
The Reserve Bank-promoted body, whose inter-bank network, the National Financial Switch (NFS), witnesses the largest transaction volume, has reduced the charges to 45 paise on an increase in volumes and efficiency, the Corporation said.
"As the central payment utility for all our banks, we would be aiming at reducing the transaction fee on a continuous basis by bringing in operational efficiency," managing director and chief executive A P Hota said.
The NFS has over 400 member banks and connects over 1.92 lakh ATMs. The switching fee is charged to issuing banks for approved transactions. The reduction in charges is applicable from May 1, the statement read.
The move comes months after the resolution of a long-drawn controversy over ATM charges for customers, where RBI was forced to intervene and settle the issue. Users can now do up to five free transactions a month at other banks' ATMs, after which they need to pay usage fee.