The National Payments Corporation of India (NPCI) has waived off switching fees for all RuPay cards for ecommerce and PoS terminal transactions. This was in effect since November 11 and will extend to December 31, 2016. Of the 755 million debit cards in circulation RuPay cards account for 40%, around 302 million in total. IMPORTANT: this waiver of fees is not applicable to MasterCard and Visa. Note that RuPay’s network charges a flat fee of Rs. 0.9 per transaction on PoS terminals (Rs 0.6 from the issuing bank, and Rs 0.3 from the acquiring bank). Visa and MasterCard charge a variable fee in proportion to the transaction concerned. The NPCI added that the switching fee would be refunded to both issuing and acquiring banks before January 31, 2017. An issuing bank is the bank which issues a debit card while an acquiring bank is the bank which accepts the payment from a merchant. It also asked all banks to issue cards for current and savings accounts (CASA) which have no yet been carded to promote digital transactions. The Jan Dhan advantage, but will it work? It needs to be pointed out that a majority of RuPay cards are issued under the Jan Dhan Yojana scheme for financial inclusion (the number of RuPay cards from Jan Dhan Accounts stood at 194 million). As such, many of these cards are not being used at all by these account holders (23.7% of 25.5 crore accounts opened under Jan Dhan Yojana have zero balance). Usage of RuPay…
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
News
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
Advert
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
News
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
News
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...