India, May 27 -- Back-to-back hikes in fuel prices and workers' wages have led to an increase of up to 20 per cent in the operating costs for cash logistics players, triggering the demand for a higher payment for managing cash at bank ATMs.

Cash logistics industry body CCA (Currency Cycle Association) has written to the Indian Banks Association (IBA) seeking a "pricing realignment".

CCA, in a statement, said it has highlighted the "rising operational cost in the cash logistics sector and has flagged a sharp rise in operating costs that will require timely pricing realignment with banks".

In the letter addressed to banks, a copy of which was reviewed by PTI, CCA said that fuel prices "have increased and continue elevating", which impact...