Update - Reducing Debit Card Charges
LocalCircles along with Dept of Consumer Affairs has been pursuing the cause of lowering cost of debit card transactions. Post our last polls and dissemination to key stakeholders and broader media, RBI had put out a draft proposal suggesting changes to the fee regime on debit cards with 0.3 pct for small merchants using digital point-of-sale terminals and 0.4 pct for physical terminals for small merchants (0.95 pct for large merchants) Small merchants being those with annual turnover of less than 20 lakhs.
The MDR charged on a debit card transaction is split between the issuing bank, the acquiring entity (bank or non-bank) and network charges levied by Mastercard, Visa and Rupay. Currently 60 - 85 pct of MDR is taken away by the issuing bank.
None of the above players in the ecosystem have agreed to the RBI proposal. The payment processors want the banks to limit their takeaway to 50 pct of MDR so there is enough revenue for them.
If you have inputs on this approach taken by RBI, do share them. Also, if you have inputs on the way forward, please advise. It is critical that cost of debit card transaction is at the lowest possible level for Cashless India to become a reality.
We look forward to your inputs! more
The MDR charged on a debit card transaction is split between the issuing bank, the acquiring entity (bank or non-bank) and network charges levied by Mastercard, Visa and Rupay. Currently 60 - 85 pct of MDR is taken away by the issuing bank.
None of the above players in the ecosystem have agreed to the RBI proposal. The payment processors want the banks to limit their takeaway to 50 pct of MDR so there is enough revenue for them.
If you have inputs on this approach taken by RBI, do share them. Also, if you have inputs on the way forward, please advise. It is critical that cost of debit card transaction is at the lowest possible level for Cashless India to become a reality.
We look forward to your inputs! more
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The problem is who cannot maintain minimum balance only poor or middle class. I think one should have only one bank account. more
Apr 16
The quarterly minimum balance. it is in fact not quarterly minimum balance it is daily minimum balance compounded to three months. more
Apr 16
respected Hina madam what answer they gave to charge so. When i closed my account they charged me for unused cheques at a rate rs. 20 per unused cheque. more
Apr 16
The Govt must intervene and ask the banks to be a little more reasonable. People just can't afford these new charges. more
Apr 06
On the question of maintaining minimum balance in savings account, there is a lot of misunderstanding. Some people think that this minimum balance has to be maintained on all days. I am not sure of this. Some clarification is needed. I think the rule is to maintain quarterly balance of the minimum amount. But in some cases even this may not be possible. Imagine a retired person surviving on pension, on a hand to mouth situation. He would have to withdraw all his money to survive. He can receive his pension only through banks, a catch 22 situation. more
Apr 06
