January 8: Nepal Rastra Bank (NRB) has fixed a new rate for inter-bank ATM transaction effective from January 14. The central bank had earlier instructed banks to provide inter-bank ATM service free of cost considering the problems caused by Covid-19.

Issuing a circular on Thursday (January 7), the Payments Department of NRB said that ATM users can withdraw money from any bank for free two times a month. After that, the ATM users will have to incur Rs 20 per transaction for inter-bank ATM service.

The central bank amended its Integrated Directive on Payments System 2077 to make the new arrangement.

Executive Director of the Payments Department of NRB Bhuvan Kandel informed that the rate fixed by the central bank for the time being is less than the average rate announced by banks and financial institutions. Knadel said that a uniform rate has been fixed for inter-bank ATM transaction so that the bankers would not feel the burden.

Prior to this, the central bank in its monetary policy had made arrangement for free inter-bank ATM service as long as the effects of Covid-19 were prevalent.

However, banks had announced to charge fare for inter-bank ATM service from the start of the current fiscal year arguing that transportation and other sectors had already opened by that time. But the central bank again issued a directive to the banks to provide free service for inter-bank ATM transaction.

Bankers were complaining that they have to bear massive loss if they are to provide the free service for an indefinite period of time. Considering the request of the banks, the central bank issued the new directive which allows free service for two times a month.