NPCI cuts inter-bank ATM transaction fees by 10%

 The National Payments Corporation of India (NPCI) on Saturday announced a 10 per cent or 5 paise reduction in charges for transactions on its inter-bank ATM network.

The RBI-promoted body, whose inter-bank network, the National Financial Switch (NFS), witnesses the largest transaction volume, has reduced the charges to 45 paise,  it said.

At a function in Mumbai on Thursday, NPCI Managing Director A P Hota said it had recently reduced the ATM switching fee from Rs 0.50 to Rs 0.45, and hoped that banks would pass on the benefits to customers. SBI Chairman Arundhati Bhattacharya, who was present, said it was a small reduction and as volumes increased, it would also reduce prices.

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. Users can now do up to five free transactions a month at other banks’ ATMs, after which they need to pay usage fee.