News

Indian consumers likely to feel the pain of FIs' EMV migration costs

June 3, 2016

The good news for India's bank accountholders is that their ATM transactions should be more secure 15 months from now, thanks to a reserve bank mandate ordering that all ATMs be chip card-enabled by September 2017.

The bad news is that this security will come at a price.

According to a report by India TV News, industry experts are predicting that transaction fees will rise as banks seek to recoup their ATM upgrade costs of approximately 10 billion–20 billion rupees ($150 million–$300 million), according to the National Payments Corporation of India.

"For new ATMs, the technology upgrade might cost anywhere from 5,000 to 10,000 rupees [each]," NPCI CEO A. P. Hota told India TV News. "For the older machines, it could go up to as high as 20,000 to 30,000 rupees. So we are expecting [the total cost to banks] to be more than [10 billion] rupees. But at implementation level it might even touch 20 billion."