Banks which are a part of the National Financial Switch (NFS) would now be paying a fee of 80 paise for every ATM transaction. NFS is the largest ATM network in the country.
Banks which are members of other networks in the country like MasterCard and Visa pay only 10-15 paise for each transaction.
The managing authority of NFS has been shifted from the Institute for Development and Research in Banking Technology (IDRBT) to the National Payments Corporation of India (NPCI) in January this year.
While IDRBT is a subsidiary of RBI, NPCI is owned by six commercial banks, including the largest lender of the country, State Bank of India.
"There is a wide disparity between what NFS charges and what other networks charge. The fee should not have been more than 25 paise per transaction," said a senior executive of a private sector bank.
NFS manages around 2.5 million transactions on an average per day and has 37 banks in its network and encompasses around 50,000ATMs.