RBI Bars Banks From Levying Electronic Payment Charges

The Reserve Bank of India (RBI) has asked banks not to charge customers for retail electronic transactions. The regulator has permitted the the levying of 25 paise for every outward and return transactions on the originating bank. Originating banks would also pay the destination banks 25 paise for every credit transaction and 50 paise for every debit transaction. “While originating banks levy charges on their customers, there has been no compensation paid to the processing centers and destination banks. There has been a demand for compensation from the paying banks/processing centres,” RBI said, adding the participant banks are not permitted to pass on these charges to customers. The charges, which may be collected on a monthly basis, would be applicable from July 1. - www.business-standard.com