RBI's new cash logistics norms might disrupt functioning of ATMs: IBA

RBI should relax net worth and security rules to prevent interchange costs from shooting up, say banks

The Indian Banks’ Association (IBA) has written to the Reserve Bank of India (RBI), seeking a relaxation of the deadline for cash logistics companies (CLC) to increase their net worth to Rs 1 billion. They have asked for relaxation to new transport and security parameters, which might push up interchange fee, a payment between banks for card-based transactions.

According to the RBI’s April 6 circular, CLCs, which take cash around the country, were supposed to increase their net worth to Rs 1 billion within 90 days. But IBA has said this deadline should be staggered: CLCs should be able to