Banks in India will have to pay National Financial Switch 1 rupee (2 U.S. cents or 1.5 euro cents) for every ATM transaction they route through the network, an official at the Reserve Bank of India tells PaymentsSource. The Institute of Development and Research in Banking Technology, a subsidiary of the Reserve Bank of India, had waived the previous 2 rupee switch fee in 2007 to reduce ATM charges.
“This has happened after we transferred ownership of the switch to National Payments Corp. of India,” the source notes regarding the re-introduction of the fee. “Previously, the control rested with the Institute of Development and Research in Banking Technology.”
According to the spokesperson, National Payments has re-imposed the fee on member banks as a transaction switch fee. “There will be initiatives taken to bring down the fee from 1 rupee,” the official adds.
Ten banks collaborated in setting up the corporation, including State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC.
