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Bank charges

ronak (M.Com) (55 Points)

17 December 2016

Dear Sir/Mam Greeting From Ronak Parekh !!!!! Problem : saervice charges cut from my bank account. i use debit card for petrol expences the bank cut service charges and on my passbook name show cut from petrol pump, as par guverment announcement no one charges cut on use of debit card so why bank cut this. so now what can i do for refund my money, if say me send application to the bank so pls suggest me the application formet so i can do

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2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (185408 Points)
Replied 17 December 2016

Banks were advised to cap MDR for debit card transactions at not exceeding 0.25% of the transaction amount for value upto 1000/ and not exceeding 0.50% for transaction amount for value above above 1000/ and upto 2000/

RBI/201617/184 DPSS.CO.PD.No.1515/02.14.003/201617 Dated: December 16, 2016

The Chairman and Managing Director / Chief Executive Officers All Scheduled Commercial Banks including RRBs / Urban Cooperative Banks / State Cooperative Banks / District Central Cooperative Banks / Payments Banks and Small Finance Banks / All Card Network Providers

Dear Madam / Sir,

Special measures upto March 31, 2017: Rationalisation of Merchant Discount Rate (MDR) for transactions upto 2000/ A reference is invited to circular DPSS.CO.PD.No.2361/02.14.003/201112 dated June 28, 2012 on Merchant Discount Rates (MDR) structure for debit card transactions wherein banks were advised to cap the MDR for debit card transactions at not exceeding 0.75% of the transaction amount for value upto 2000/ and not exceeding 1% for transaction amount for value above 2000/.

2. Following the withdrawal of legal tender characteristics of existing 500/ and 1000/ Bank Notes (Specified Bank Notes – SBN), in order to facilitate wider acceptance of card payments, the following special measures for debit card transactions (including for payments made to Government), are being introduced for a temporary period:

i. For transactions upto 1000/, MDR shall be capped at 0.25% of the transaction value.

ii. For transactions above 1000/ and upto 2000/, MDR shall be capped at 0.5% of the transaction value.

3. The above measures shall not apply to ATM transactions.

4. The above measures shall come into effect from January 1, 2017 and shall be applicable till March 31, 2017. In the intervening period, the Reserve Bank of India will review the framework for charges for electronic payment transactions, in consultation with the stakeholders.

5. The directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).

Yours faithfully

(Nanda S Dave)

Chief General Manager