Lok Sabha Question No. 421 (UNSTARRED), answered on 2017-02-03
Subject: Levying Convenience Charges on Cards
Ministry: FINANCE
Asked by: SAUGATA ROY, PR. SENTHILNATHAN

(a) No.

- (c) The details of the charges levied on digital payments are at Annex

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA

TO BE ANSWERED ON 3rd FEBRUARY, 2017 (FRIDAYYMAGHA 14, 1938 (SAKA)

## UNSTARRED QUESTION No. 421

## Levying Convenience Charges on Cards

## 421. PROF. SAUGATA ROY: SHRI PR. SENTHIL NATHAN:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has issued any circular to foreign companies involved in digital transaction not to charge any service charges from common people doing digital transaction, if so, the details thereof and if not, the reasons therefor;
- (b) whether the Government has been charging the common people any form of service charges for carrying the transactions digitally, if so, the details thereof;
- (c) the details of the   charges levied for  carrying out  digital transaction  through various systems of digital transactions available for the common people;
- (d) whether the Government has information that State Bank of India is levying convenience Charges from Credit/Debit Card users for recharging of their metro cards even in the wake of Government's efforts for promoting plastic currency and e-wallets, if so, the details thereof; and
- (e) the action taken/being taken by the Government in this regard?

## The (SHRI SANTOSH KUMAR GANGWAR)

## Answer Minister of State in the Ministry of Finance

- (b) In terms of Office of Controller General of Accounts Office Memorandum dated 14.12.2016, the applicable Merchant Discount Rate (MDR) charges on debit cards for payment up to Rs. 1 lakh shall be absorbed by the Government: In terms of Department Enterprises letter   dated 9.12.2016, all Central Public Sector Enterprises (CPSEs) are required to ensure that transaction fees, MDR charges associated with payment through digital means shall not be passed on to the consumers and all such expenses shall be borne by CPSEs.
- (d) and (e) State Bank of India has apprised that it does not any convenience charges on users for recharging Mumbai Metro cards using various Banking Channels, and that in respect of DMRC cards, MDR is to be charged to customers as service charges. levy

## CHARGES ON DIGITAL PAYMENTS

(Note: 1) All percentages are expressed as percentage of transaction amounts; 2) ST = Service Tax)

| MODE                                           | TRANSACTION VALUE                                            | CHARGES                        |
|------------------------------------------------|--------------------------------------------------------------|--------------------------------|
| Debit Card                                     | Merchant Discount Rate (MDR) on transactions up to Rs 1000/- | 0.25%                          |
| Debit Card                                     |                                                              | 0.50%                          |
| Debit Card                                     | MDR on transactions above Rs 2000/-                          | 1% + ST                        |
| Credit Card                                    | MDR on transactions up_to Rs 2000/-                          | Market Determined              |
| Credit Card                                    | MDR on transactions above Rs 2000/-                          | Market Determined + ST         |
| Immediate SericyremPs)                         | IMPS transactions up to Rs:_ 1000/-                          | 0%                             |
| Immediate SericyremPs)                         | IMPS transactions_from Rs: 1000/-to 25000/-                  |                                |
| Immediate SericyremPs)                         |                                                              | Not in excess of NEFT + ST     |
| Unified Payments Interface (UPI)               | Person to Person_Transactions                                | Same as IMPS                   |
| Unified Payments Interface (UPI)               |                                                              | 0%                             |
| Unified Payments Interface (UPI)               | Person to Merchant transactions from Rs. 1000/ - to 2000/-   | Not in excess of NEFT + ST     |
| Unified Payments Interface (UPI)               | Person to Merchant transactions above Rs: 2000/-             | Not in excess of NEFT + ST     |
| Unstructured Supplementary Service Data (USSD) | USSD transactions_up to Rs: 1000/ -                          | 0%                             |
| Unstructured Supplementary Service Data (USSD) | USSD transactions above Rs. 1000/ -                          | Not in excess of NEFT 50p + ST |
| National Electronic Funds Transfer (NEFT)      | NEFT transactions up to Rs: 10000/-                          | Rs. 2.50 + ST                  |
| National Electronic Funds Transfer (NEFT)      | NEFT transactions _from Rs: 10000/- to lakh/-                | Rs. 5 + ST                     |
| National Electronic Funds Transfer (NEFT)      | NEFT transactions_from Rs 1 lakh/- to 2 lakh/-               | Rs. 15 + ST                    |
| National Electronic Funds Transfer (NEFT)      | NEFT transactions above Rs. 2 lakhl-                         | Rs. 25 + ST                    |
| Real Time Gross Settlement (RTGS)              | RTGS transactions from Rs: 2 lakhl- to 5 lakh/-              |                                |
| Real Time Gross Settlement (RTGS)              | RTGS transactions above Rs: 5 lakhl-                         | Rs. 55 + ST                    |