At present, the interchange is capped at Rs 15 per cash transaction and Rs 5 for each non-cash transaction by the central bank, and service providers have asked for it to be raised by Rs 3-5.
ATM service providers have sought an increase in the interchange payable on each ATM transaction after the Reserve Bank of India (RBI) put out a circular requiring banks to put in place certain standards in their arrangements with service providers for cash management-related activities within 90 days from the date of the circular. The interchange is the fee paid by the bank whose card is swiped at an ATM to the bank that owns the ATM. At present, the interchange is capped at Rs 15 per cash transaction and Rs 5 for each non-cash transaction by the central bank, and service providers have asked for it to be raised by Rs 3-5.
In a statement put out on Wednesday, industry body Confederation of ATM Industry (CATMi) formally reiterated its demand. The group said in the statement, “These (standards) include the provider should have a minimum fleet size of 300 specifically fabricated cash vans, with two custodians and two armed security guards (gunmen) beside the driver, each cash van should be GPS-enabled and monitored live with geo-fencing mapping with the additional indication of the nearest police station in the corridor for emergency. ATM operations should be carried out only by certified personnel who have completed minimum hours of classroom learning and training, among others.”
The statement said that yet another circular pertains to banks considering using lockable cassettes in their ATMs, which shall be swapped at the time of cash replenishment, in order to mitigate risks involved in open cash replenishment or top-up. This will replace the traditional top-up method, where the service provider would note the currency disbursed and replenish the cassette with currency. “The swap of cassettes requires a massive investment by the ATM service providers, as additional cassettes will have to be available for all ATMs, instead of use of the same cassette,” CATMi said.