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Cap on online transaction service fee likely

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Airtel payments bank charge a fee of 0.65% on all cash withdrawals above Rs 4,000 from the account

The Narendra Modi government is considering a cap on service charges levied on online transactions, as it looks to encourage further digital means of payments  for goods and services. According to a senior government source, rules are to be amended to put a limit on service charge as volume of transactions increase. "The government has received feedback from consumers and stakeholders on how high rates of service charges are disincentivising them to shift to a less cash economy." said the person, and added that there would be notification on the matter soon.
 
Some of the mobile wallets charge around one per cent service charge for KYC (know your customer) and around four percent service charge for non-KYC account holders for using their services, said shopkeepers using mobile wallets.
 
Airtel payments bank charge a fee of 0.65 per cent on all cash withdrawals above Rs 4,000 from the account. India Post payments bank is not planning to charge  anything on transactions.

04TH FEBRUARY,2017, BUSINESS STANDARD, NEW-DELHI
 

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