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  Metros   Mumbai  23 Nov 2016  Mumbai: Muddle over 2 per cent charge on card payments

Mumbai: Muddle over 2 per cent charge on card payments

THE ASIAN AGE. | MEHUL R THAKKAR
Published : Nov 23, 2016, 6:48 am IST
Updated : Nov 23, 2016, 1:24 pm IST

Several merchants are asking for 2 per cent extra payment from those who are paying via cards.

 People stand in long queues outside a bank to exchange their old Rs 500 and Rs 1000 notes in Mumbai (Photo: PTI)
  People stand in long queues outside a bank to exchange their old Rs 500 and Rs 1000 notes in Mumbai (Photo: PTI)

MUMBAI: With the Centre urging people to use plastic money in terms of debit and credit cards for making payments post the demonetisation of Rs 500 and Rs 1,000, several merchants are asking for 2 per cent extra payment from those who are paying via cards.

The merchants allege that they are charging it because the banks are charging them. However, the Reserve Bank of India (RBI) claims that they have already informed the banks to not charge any additional charges on such transactions.

 

RBI spokesperson Alpana Kilawala said that they had already informed the banks over this week to stop this practice. “Now it is their responsibility to update their software and inform the merchants and shopkeepers about the same,” Ms Kilawala said.

Mr Francis Dsa, a media professional, said, “It is very foolish of the government to promote plastic money and on the other hand have merchants and shopkeers charge extra for making payments via cards. I have personally faced this problem recently when I went for servicing of my vehicle. The representative from the company told me that if I use my card to make the payment I would be charged an additional 2 per cent extra from the total amount of the bill.”

 

Chandni Jain, another professional, faced a similar problem. “After demonetisation, a garment shop owner asked me that he would charge 2 per cent extra on the total bill. He did not give any explanation as to why he is charging it.” Meanwhile, two branch managers The Asian Age spoke to informed that they have not received any such written communication from the RBI.

“The bank has informed us in writing to not levy extra charges on more than three transactions from different ATMs but the RBI is silent in the case of transaction via plastic money,” said, D.K. Jain, branch manager, Central Bank of India, Wadala branch.
The RBI has also issued a circular on November 14, 2016 directing  all  the  banks to waive the levy on ATM charges done at their own banks irrespective of the number of transactions.

 

In a meeting with the chief minister Devendra Fadnavis on Tuesday, traders requested him to ask banks to abolish the charge levied on them for making transactions using debit and credit cards.

Tags: demonetisation, plastic money, alpana kilawala