RBI sets up panel to review ATM charges
The Reserve Bank of India (RBI) has decided to set up a committee to review the charges levied on the use to ATMs (automated teller machines) as the usage by the public has been growing significantly. "There have, however, been persistent demands to change the ATM charges and fees," the central bank said in a notification.
How it will impact
The move could impact the charges paid by customers of other banks to use the facility. So, the charges you pay for using ATMs of other banks may change.
What RBI governor Shaktikanta Das said
The committee is expected to submit its recommendations within two months of its first meeting, RBI governor Shaktikanta Das said. The composition and terms of reference of the committee will be issued within a week, the RBI noted.
ATM charges may be revived, boost deployment
The new committee will review the ATM interchange and fee structure. This could result in ATM deployment, which had slowed down, and it may revive new charges.
Nandan Nilekani on RBI's new committee
IT veteran Nandan Nilekani, who headed the RBI committee on digital payments, said the central bank's decision on review of charges for payment systems, and constitution of a committee to review the ATM interchange fee structure would help increase digital transactions.
Other changes in developmental and regulatory policies of RBI
"It has been decided that the minimum LR (leverage ratio) should be 4 per cent for Domestic Systemically Important Banks (DSIBs) and 3.5 per cent for other banks," the RBI stated. The revision could add Rs 1 lakh crore to the lendable resources of banks.
Liquidity management framework
The review of the liquidity management framework would lead to better transmission of the rate revisions by the RBI.
Money market directions for different debt instruments
The review of money market directions will provide more transparency and bring consistency of rules across debt instruments and players.
Retail participation in the government security market
As per latest move from the RBI, stock exchanges to act as aggregators for retail participation in state development loans (bonds). This will add depth to state government loan market and retail investors get to invest in secure bonds with high returns.
Circular on NPA or bad loan resolution
RBI on Friday issued revised guidelines for NPA (non-performing asset) recognition, replacing the February 12, 2018 circular. This might pave the way for resolution of stressed projects. The new circular has been issued after the previous directive was struck down by the Supreme Court.
Changes in RBI disclosure policy
Changes have been made in the RBI disclosure policy following the top court's order. Annual inspection reports may be made available under the Right to Information (RTI).