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Banks to Refund charges on digital payments since January 1 | CBDT Supervise .

Banks to Refund charges on digital payments since January 1

Banks to Refund charges on digital payments since January 1 | CBDT Supervise: The Central Board of Direct Taxes (CBDT) asked banks to return the charges that they charged to customers during digital Transactions.

” According to section 10A under the Payments and Settlements Systems Act 2007 now no bank shall impose any charge to customer on digital payment under section 269SU of IT Act .”

The digital mode of transactions include :

1)Debit card powered by RuPay,

2) Unified Payment Interface (UPI)

3) Unified Payment Interface Quick Response code (UPI QR code), BHIM UPI QR code.

To encourage online payment and cash less economy , the government put a new provision , Section 269SU , in the finance Act.

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ALSO , CBDT also said not to impose any charge in future on digital transactions carried out by an customers. Banks are advised to return the collected charges immediately ,if any , on or after 1 January according to the Section 269SU Act and also not to impose charges on transactions carried out using the Digital modes.

Most of the banks are charging Rs2 to Rs2.5 on person to person payments through Unified Payments Interface(UPI) more than 20 Times in a month.

Some banks are imposing and collecting charges on digital payments .These certain number of payments are allowed free of charge on every transactions. Such practice of taking money is against the law of section 10A of the PSS Act as well as section 269SU of the IT Act. The rate fee charged to merchant when doing transactions by UPI range between 1% – 3% of the overall amount.

Other Than RBI , NPCI’s CEO also gave his support and insist that MDR should be brought back .

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