comscore Finance Ministry waives off transaction fee on RuPay debit cards, railway e-ticketing till December 31

Finance Ministry waives off transaction fee on RuPay debit cards, railway e-ticketing till December 31

Private banks have waived off of the transaction fee for debit card transactions with effect from today till December 31.

  • Published: November 23, 2016 6:15 PM IST

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With the aim to promote online and card payments, the Finance Ministry waived off the transaction fee on RuPay debit cards, public sector banks’ debit cards and railway e-ticketing till December 31 with an advise to private sector banks to follow suit, it was announced here. Also Read - India's first virtual science lab launched for students: Here's what the govt wants to acheive with it

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“To promote greater use of debit cards, public sector banks and some of the private sector banks have decided to waive off the MDR (Merchant Discount Rate) charges till December 31. Other private sector banks are expected to do likewise,” the Finance Ministry said in a statement. Following suit, leading private sector bank ICICI announced waiving off of the transaction fee for debit card transactions at ICICI Bank merchants with effect from Wednesday till December 31.

“To facilitate the use of RuPay debit card, the banks have decided to waive off transaction charges up to December 31, 2016. These steps will improve the acceptance of debit cards at different establishments,” the statement said. To encourage passengers to buy e-tickets instead of making across-the-counter purchase through cash, the Indian Railways have decided not to levy service charges of Rs 20 for second class and Rs 40 for upper classes on purchase of reserved e-tickets up to December 31, it said. ALSO READ: No charges will be levied on debit card payments: Government

Daily average number of passengers buying e-tickets online is 58 percent and across-the-counter in cash is 42 percent of the total purchase of tickets. “The effort now is to increase the purchase of e-tickets. It is expected that the above measure will encourage people to migrate to cashless transactions,” it added. To promote greater usage of payments through e-wallets, the Reserve Bank of India has decided to increase the monthly transaction limit for individuals from Rs 10,000 to Rs 20,000. ALSO READ: Paytm now enables any merchant to accept debit, credit cards on their Android smartphone

All government organisations, public sector undertakings and other government authorities have been advised to use only digital payment methods such as internet banking, unified payment interface, cards, Aadhar-enabled payment system etc. to make payments to all stakeholders and employees, the statement said. One of the objectives of the government’s demonetisation decision, announced on November 8, was to nudge India towards a cashless society.

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  • Published Date: November 23, 2016 6:15 PM IST

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