No Transaction Fee on Card Payments, Rail e-Ticketing Till 31-December

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To promote online and card payments, the Finance Ministry waived off the transaction fee on RuPay debit cards, public sector bank’s debit cards and railway e-ticketing till December 31 with an advice to private sector banks to follow suit, it was announced.

“To promote greater use of debit cards, public sector banks and some of the private sector banks have decided to waive of the MDR(Merchant Discount Rate) charges till December 31. Other private sector bank expected to do likewise,” the Finance Ministry said in a statement.

Following suit, leading private sector bank announced to waiving off the transaction fee free 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 making across the counter purchase through cash, the Indian Railway decided not to levy the 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.

Daily average number of passengers buying e-tickets online 58 percent and across the counter in cash is 42 percent of the total purchase of tickets.

To promote greater usage of payments through e-wallet, the Reserve Bank of India has decided to increase the monthly transaction limit for individuals from Rs 10,000 to Rs 20,000.

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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