Telangana: Cashless? Banks still charge you

Hyderabad: Transaction charge or surcharge is still being collected when debits cards are used to purchase fuel at petrol bunks in the city despite the central government’s directions.

Economic affairs secretary Shaktikanta Das had on November 23 announced that to encourage widespread usage of digital payments post demonetisation no transaction charges will be levied on debit cards till December 31 and all public sector banks and some private sector banks agreed to waive the transaction cost for all payments made through debit cards.

In violation of this rule transaction charges are being collected at pumps. Petrol bunk dealers blame banks for not following RBI guidelines regarding transaction tax cut stating that they are taking only the price for fuel filled. For Instance on a purchase of petrol for Rs 198 using debit card at Laxmi Tyres and Auto Services at SD Road, around Rs 11.5 surcharge was collected on December 1.

Mr Rajiv Amaram of Consortium of Indian Petroleum Dealers said, “Banks have different parameters. Some banks do not charge for purchases from Rs 400 to Rs 2,000. They charge when it is below that or above that limit to the tune of 1.5 to 3 per cent. The charges actually go to the bank and not to us. Usually we were told in a month the banks will return the surcharge.”

All India Bank Officers Association secretary Anil Kumar said, “Despite instructions they are collecting transaction cost as it comes under non-interest income and this income is considered to be good for banks. Merchant establishments and banks have to sort out this."

Several banks do not charge for using the debit card at domestic merchant locations and websites. But at select merchants like IRCTC, railway stations and petrol pumps transaction charges are collected as per industry practices.

At petrol bunks Rs 10 or 2.5 per cent whichever is greater is collected on each transaction and at railway station about Rs 30 per ticket or 1.8 per cent of transaction amount. Post demonetisation this was stopped by the Centre till the month end. But banks are not following it particularly private sector banks.