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Don’t Charge Customers For Smaller ‘Digital’ Transactions Till March End: RBI To Banks

Ashok KM
19 Dec 2016 8:59 AM GMT
Don’t Charge Customers For Smaller ‘Digital’ Transactions Till March End: RBI To Banks
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To support the ‘digital banking’ push by the Central government, the Reserve Bank of India has directed banks not to levy any charges on customers for transactions up to ₹1,000 settled on Immediate Payment Service (IMPS), USSD-based *99# and Unified Payment Interface (UPI) systems from January 1, 2017, to  March 31, 2017.

The apex bank has clarified that this is a ‘temporary measure’ to support the government, which is pushing for greater adoption of digital payments by large sections of the society, The RBI said it would facilitate a review of the charges in the meantime.

Vide another notification, the RBI directed the banks to cap merchant discount rate for transactions up to ₹1,000   at 0.25% of the transaction value, and for transactions between ₹ 1,000 and ₹2,000 at 0.5% of the transaction value.

This article has been made possible because of financial support from Independent and Public-Spirited Media Foundation.

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