Have you heard the latest about ATM fees going up? Many people are wondering if Bill Gates’ recent visit to India has affected the cost of taking out cash there or even in other countries. Some are guessing that there might be a secret reason for these fee increases, possibly to push more people towards digital and online payments. Let’s look into Bill Gates’ connection with the National Payments Corporation of India (NPCI) and how it might tie into the rise of digital payments, which could be influencing ATM fees.
Bill Gates, through the Bill & Melinda Gates Foundation, has supported NPCI’s efforts to advance digital payment systems like the Unified Payments Interface (UPI) in India. His focus has been on promoting financial inclusion and reducing reliance on cash by encouraging scalable, low-cost digital transaction platforms. One notable example is the “Grand Challenge” launched in 2019, where the Gates Foundation partnered with NPCI and Centre for Innovation Incubation and Entrepreneurship to invite startups and individuals globally to develop digital payment solutions for feature phones. This initiative addressed the fact that while UPI was widely used on smartphones, feature phone users—over half a billion people in India—lacked access to similar instant payment services. The challenge offered a prize of approximately $50,000 (around Rs 36 lakh at the time) to winners who could create secure, user-friendly payment solutions for this demographic, aligning with the Foundation’s goal of financial inclusion.
Gates has also praised UPI as a model for other countries, noting its efficiency in lowering transaction costs and aiding cash distribution during crises like the COVID-19 pandemic.
Ref: https://timesofindia.indiatimes.com/gupshup-messaging-platform-wins-npci-grand-challenge-by-enabling-payments-through-secure-messaging-on-feature-phones/articleshow/75737396.cms
22 Feb 2025: Sanjay Malhotra, who was the revenue secretary in the finance ministry, replaced Shaktikanta Das as the 26th RBI governor.
In India, the RBI Governor would sign off on broad policy changes affecting ATM fees, but the proposal might originate from a banking association or internal RBI team
The RBI, India’s central bank, holds the ultimate authority over banking regulations, including ATM fees. Its governor oversees monetary policy and banking oversight, but fee decisions are typically made by RBI committees or departments like the Department of Payment and Settlement Systems, not Das alone.
The NPCI, which manages India’s retail payment systems including the National Financial Switch (NFS) for ATM transactions, proposes fee adjustments based on industry input. Its managing director and CEO, currently Dilip Asbe, leads these efforts, but the decision isn’t his alone—it comes from NPCI’s steering committees, like the NFS Steering Committee, which recommended the latest hike on March 6, 2024. The NPCI then seeks RBI approval, as seen in their March 13, 2025, circular to banks.
As of May 1, 2025, the Reserve Bank of India (RBI) and NPCI have approved an increase in ATM interchange fees—the amount banks pay each other for ATM transactions—raising the cost of cash withdrawals from ₹17 to ₹19 per transaction and non-financial transactions like balance inquiries from ₹6 to ₹7. This hike, effective after free transaction limits (typically five in metro areas and three in non-metro areas at other banks’ ATMs), reflects rising operational costs for ATM operators, as pushed by white-label ATM providers. The move aims to sustain their business viability amid a shift toward digital payments.
Gates’ involvement with NPCI aligns with a broader push for digital transactions, which he and the Foundation see as a way to reduce the need for physical cash infrastructure like ATMs. By advocating for systems like UPI, he indirectly supports a trend where cash usage declines, potentially making ATM maintenance less profitable and prompting banks to raise fees to offset costs. Gates focus is on cashless society.
UPI ATM: The future of fintech is here! 💪🇮🇳 pic.twitter.com/el9ioH3PNP
— Piyush Goyal (@PiyushGoyal) September 7, 2023
Additionally, the Gates Foundation’s work in India intersects with NPCI through its support for digitizing government payments to poor households and fostering new digital banking models. While the foundation disburses grants from its Seattle office and does not directly fund NPCI, its partnerships with Indian government bodies and organizations like NPCI reflect a shared goal of enhancing financial access and efficiency through technology. Gates’ visit to the RBI office in Mumbai in February 2023, where he discussed financial inclusion, payment systems, and digital lending with Governor Shaktikanta Das, further underscores his engagement with India’s financial ecosystem, of which NPCI is a key component.
In summary, Bill Gates’ involvement with NPCI to support and innovate within India’s digital payment landscape, leveraging NPCI’s infrastructure to advance financial inclusion.
Additional Information:
While the Unified Payments Interface (UPI) was developed by the National Payments Corporation of India (NPCI), Nandan Nilekani, the co-founder of Infosys and former chairman of UIDAI (Aadhaar), is often referred to as the “father of UPI” in India due to his pivotal role in shaping India’s digital payments landscape.
Managing Director & CEO at National Payments Corporation Of India (NPCI) Mr. Dilip Asbe is the MD & CEO of National Payments Corporation of India (NPCI). Prior to this he was the Chief Operating Officer (COO) of NPCI.
Why Does Bill Gates Like AADHAAR SYSTEM?
Bill Gates is on his first tour of India since the Covid pandemic. In an exclusive interview with Network 18, Bill Gates candidly spoke about India’s Presidency in G20, technological advancements that India has made with its Aadhaar System & UPI.
SBI Fintech Innovation Incubation Program (FIIP)
State Bank of India has been at the forefront in supporting FinTechs and Startups through various avenues. Its Startup branches at Bengaluru, Gurgaon, Noida, Chennai, Pune, Mumbai and Hyderabad as well as various branches in different states with startup services provide various services aligned towards startups besides having IT Innovation Startup Engagement Program (IT-ISEP) and FinTech Innovation Incubation Program. State Bank also provides SBI Group Financial Services Solutions for Startups. SBI has provided opportunities to various startups to get associated with its flagship YONO and other operational and IT infrastructural set ups. Bank also collaborates with FinTechs and startups in form of co-lending and other financial inclusion programs.
Ref: https://www.indiafilings.com/learn/sbi-fintech-innovation-incubation-program-fiip/
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