Mumbai: Credit and debit cards will continue to be accepted at petrol pumps even after January 13 without customers having to pay transaction charges, the government said on Monday.
Petrol pump operators had on Sunday threatened to stop accepting card payments after banks said the transaction charges of up to 1 per cent will have to be borne by them. The crisis was averted after banks agreed not to insist on transaction charges for five more days, leading to pumps owners deferring their plans till January 13.
Mr Pradhan said the government stands by its decision that customers using non-cash digital modes of payments will not have to pay any transaction charge. Also, the 0.75 per cent discount on fuel rate for using digital payments will continue.
“Banks and oil marketing companies (OMCs) are discussing the issue. In the coming days a mechanism will be worked out under which customers or petrol pump owners will not bear the cost,” he said.
Mr Pradhan said the government had in February last year issued a circular saying customers will not have to bear the MDR charges on digital transactions so as to help the country move towards digital transaction and less cash economy.
“The government will ensure implementation of that decision,” he said. “In the coming days whatever digital transactions happens especially in petrol pumps, the burden will not be passed on to customers.”
When a card payment is made using a POS machine, service charges are levied. All stakeholders are discussing who will bear these, he said. Mr Pradhan said the Reserve Bank of India has come out with a circular on the amount of MDR to be charged for transactions below Rs1,000, those between Rs1,000 and Rs 2,000 and those above Rs2,000.
Asked if petrol pumps will continue to accept card payments after January 13, he said, “They will accept cards. I want to assure the people of the country who want to do digital transactions in petrol pumps, they will continue to do so.”
