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micro-ATM: Fight on over micro-ATM interchange fee rates - The Economic Times

Now, banks with the largest micro-ATM network, Andhra Bank, Axis Bank, IndusInd Bank, IDFC Bank and Syndicate Bank, are lobbying the Payments Corp of India to raise the fee on transactions by co mpetitors' customers to 1% from 0.5% as they find it unviable to maintain these ATMs. In a letter to NPCI which has been seen by ET, banks have told NPCI that revision in interchange fee was done without any sound rationale and no consideration was taken towards the costs incurred to create it.

"Revised AEPS (Aadhaar Enabled Payment System) interchange which was applied on banks with retrospective effect has impacted the creation of Aadhar payment acceptance infrastructure," the letter says. "Banks who want to create, deploy and maintain such a last mile BC network now have to incur losses to service other bank customers."

The NPCI in a discussion with all banks decided to fix the interchange fee at 0.5% of the transaction amount with Rs 15 as maximum. All transactions less than Rs 100 were to be made free. Earlier, micro ATMs had an interchange fee of 1% with a minimum of Rs 5 and a maximum of Rs 15. But, despite the new rates, the stalemate continues.