Charging On Digital Payments Can Get Rid of People, Says Govt Says Banks Don't Charge Money

 The Finance Ministry has asked banks to refund the online transaction or payment fee to customers if it is charged. According to the Finance Ministry, no fee should be levied on any transactions made in electronic mode from or after January 1.

Charging On Digital Payments Can Get Rid of People, Says Govt Says Banks Don't Charge Money

The Finance Ministry on Sunday suggested to banks not to charge any transactions or payments made electronically. People have resorted to electronic payments to avoid infection during the corona epidemic. With the increase in electronic payments, some banks have also started charging customers. In view of this, the Finance Ministry has suggested to banks not to do so.

The Finance Ministry has asked banks to refund the online transaction or payment fee to customers if it is charged. According to the Finance Ministry, any transactions made in electronic mode from or after January 1 should not be charged. The Finance Ministry has referred to section 269 Su of the IT Act for the same. The ministry said that under this section, no fee should be charged on future transactions in electronic mode.

Four years ago, in 2016, the government had discontinued thousand and five hundred notes to curb black money. The move saw a rapid increase in the prevalence of electronic transactions in people. The closure of old notes has brought a surge in digital payments and reduced the use of cash.

The corona epidemic is also seeing a similar trend. Note Since many pass through hands, this can increase the risk of infection. So people have considered digital payments more secure. If banks charge a fee, people may be reluctant to adopt electronic mode. In view of this, the finance ministry's suggestion is very important.

A circular was also issued on December 30 last year. The circular quoted Section 10A of the PSS Act as saying that no electronic transactions shall be charged on or after 1st January 2020. This includes MDR i.e. merchant discount rate. However, there were complaints that despite the circular, some banks are charging fees on transactions under UPI. It said that only a few electronic payments are free and charges will be charged after a limit. The finance ministry has said that banks which will be able to do so can be dealt with under the legal provision.