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    Do not collect charges on electronic transactions: Finance Ministry tells banks

    Do not collect charges on electronic transactions: Finance Ministry tells banks

    Do not collect charges on electronic transactions: Finance Ministry tells banks
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    By CNBC-TV18  IST (Updated)

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    The Finance Ministry has advised banks against collecting any charge on transactions done through the electronic mode, sources told CNBC-TV18.

    The Finance Ministry has advised banks against collecting any charge on transactions done through the electronic mode, sources told CNBC-TV18.
    The development comes after complaints emerged about some banks imposing and collecting charges on UPI transactions.
    Sources added that the ministry will also take action against banks demand payments on transactions.
    "Some banks were allowing only a limited number of free transactions via electronic mode. This is in violation of the Circular no. 32/2019 dated 30.12.20219, which was issued by CBDT to clarify that based on section 10A of (Payment and Settlement System (PSS) Act, any charge including Merchant Discount Rate shall not be applicable on or after 1st January 2020 on payments made through electronic modes," the source said.
    The ministry has also asked banks to immediately refund charges collected this year and not to collect such charges anymore.
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