Dear Members, It has been reported by few consumers that Merchants/ Banks are charging transaction fee in case the consumer is making payment by debit cards. Recently it has also come to the notice that even petrol pumps are also charging additional fee which in some cases have been to the extent of 5%.
Reserve Bank of India vide their order No. RBI/2013-14/292 DBS.CO.PPD No. 3578/11.01.005/2013-14 dtd. 17/09/2013 has stated that such fees are not permissible. A copy of the said order is posted here for ready reference. The members may raise their voice against unfair business practices by merchants/banks. more
Reserve Bank of India vide their order No. RBI/2013-14/292 DBS.CO.PPD No. 3578/11.01.005/2013-14 dtd. 17/09/2013 has stated that such fees are not permissible. A copy of the said order is posted here for ready reference. The members may raise their voice against unfair business practices by merchants/banks. more
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I have experienced that Petrol pumps charge service charge on bank card payment. My experience is that when I buy petrol for Rs. 1000, I get a cash bill for Rs. 1000 from the swiping machine. So I think that there is no service charge. But when I get the monthly statement from the Bank, there will be service charge added to this 1000 rupees. I experienced this two times. Now I am paying cash only. Why should petrol pump shy away from charging service charge? When Banks and other commercial establishments charge various service charges on various services (these are not justified, I feel), it is quite right that petrol pump also charge it. The government should answer this point. more
Apr 01
Dear Mohammad Asif Khan, I am really pleased to hear from you with specific considerations. I have been a user of digital system for long and now it is more than 25 years. Unfortunately, our governments did not encourage honesty and sincerity even towards payment by cheques diligently not issuing the receipts instantly for even tax payments by individuals. Economy in Western countries is quite different from ours for last long time and they have been maintaining inflation below 3% whereas inflation in India has gone to double digits as opposed to rise in income in single digit only. In those countries The imbalance is too high in our country and advantage of this is being taken away by some select people. In case of cashless transactions for smaller amount in and up to three digits we in my opinion should not be liable for any service charges by banking organisations. Considering the current interest rate of 4% in S.B. Accounts and on debts @7.5% or higher maximum transaction charges above Rs.1000 could be imposed @0.5% in the appropriate slabs of Rs.5, 10, 15, 20 and so on or Rs.5, 6, 7, 8, 9 and so on. RBI's free withdrawal of cash by ATM will not promote the cashless transaction scenario because it allows certain sections to continue with cash that too high values. Restriction on cash by an individual should be restricted to Rs.2,000 on any day and Rs.30,000 cumulative in a month. Wish you all the best Asif and if you feel we can interact one to one basis as well. shishirkant1950@gmail.com and 9810086319 are my contact details. more
Mar 31
Shishir ji, I am working in digital payment domain for past 16 years..obviously most of my transactions are digital. You know that in west, they have started charging on saving account because it is a service to provide a safe custody to cash. Yes, bank invest and earn on such deposit, but they also give back interest. We need to understand that for each service there is a cost, nothing comes free. RBI has already mandated x number of free withdrawl per month from ATM and it is possible as ATM network is local. But POS transactions attract more fee, it is less on debit and higher on credit, but it is more than ATM. This fee is paid by merchant to issuer via network party. Agree that for promoting digital payment in India, government need to promote it but it can be subsidized but can't be free without burden on government. Someone needs to pay for these cashless transactions. On the other hand, you can always carry cash and enjoy no charges, but that is also create a risk and inconvenience. Anyway this is my view point and we need to look at issue from all angles. more
Mar 30
Asif ji, You may know that debit card is used to transfer or withdraw money of an individual from his personal account instantly. It is as good as withdrawing ones money deposited in your account when transferred to third party account. In any case Banks should not charge the customer or the payee for transactions through debit card. Perhaps you have not involved yourself in cashless transactions. In debit card transactions there is no additional liability on the bank which is holding our money and enjoying direct/indirect benefits. more
Mar 30
Agree on petrol but what about other commodities? By the way I am neither a petrol seller not grocery ..i m a consumer just like many. :) more
Mar 30
