What is Debit Card?
A debit card is basically a card used for fund transactions. Going by the name plastic cash, bank card and more, you can enjoy electronic access to your savings account in any bank via ATMs. You can deposit and withdraw as per your convenience this way without the hassle of standing in long queues. Same can be utilized for mobile banking and internet banking.
Types of Debit Cards in India
- Visa Debit Cards
These debit cards are issued with the bank’s tie-up with VISA payment services providing the Verified by Visa (VbV) platform for online transactions.
- Visa Electron Debit Cards
Visa Electron debit cards are very similar to Visa debit cards but these cards do not provide the overdraft feature.
- MasterCard Debit Cards
A MasterCard Cirrus Card or a MasterCard Maestro Card gives customers access to their funds worldwide and they can perform online transactions using their bank accounts on the MasterCard SecureCode platform.
- Contactless Debit Cards
Customers can make payments with just a tap or wave of their contactless debit cards near PoS terminals, with the cards working on Near Field Technology (NFC) thereby making electronic payments safer.
- RuPay Debit Cards
Introduced as a domestic card scheme by the NPCI, RuPay debit cards facilitate online purchases and transactions on the Discover network and ATM transactions under the National Financial Switch network.
- Maestro Debit Card
Founded in 1992, Maestro from MasterCard is a premier, international debit card service that has been popularly adopted at over 13 million locations spread across 100+ countries around the world. Maestro, as easily identified by the signature logo on all partner cards, helps the customer gain immediate access to his/her money through a robust, international network of compatible ATMs, POS outlets and online resources.
Things to know about IRCTC RuPAY Debit Card
IRCTC RuPay debit card was launched by the National Payment Corporation of India (NPCI) and it comes as an additional unit to augment the system of cashless transactions. It functions much like the Visa card or MasterCard and offers both virtual and physical options to cardholders. The card can be used exclusively for booking train tickets through IRCTC portal. It’s the first payment gateway system ever launched in India. Here’s a listing of some of the key features and benefits of the IRCTC RuPay prepaid card:
- Enables easy booking of train tickets through the IRCTC portal
- No transaction charges will be deducted for the first six months and users can book up to 5 railway tickets each month
- The project is a result of the combined efforts of IRCTC and Union Bank of India
- After the free usage limit, a transaction charge of Rs.10 will be deducted on each booking
- Accident benefits ranging up to Rs.2,00,000 will be provided to customers who have successfully completed KYC submission
- Reward points will be generated on the transactions. However, IRCTC is yet to specify how to redeem the points collected
Options available on IRCTC RuPay Debit Card
There are two options available on the card namely Virtual card and Physical card. The Virtual card requires only partial completion of KYC details and the transaction limit offered on the cards is Rs.10,000. It comes with a 1 year validity. Even for Physical card the max card limit is Rs.10,000 with partial KYC details but with completion of KYC, the limit can be extended to Rs.50,000. The Virtual card comes for free whereas the physical card will be sent to your registered address for a nominal fee of Rs.50. The Virtual card credentials are sent to the applicant’s email address which can be used at the time of booking tickets.
Add-ons with Rupay Debit Card
IRCTC has tied up with various brands such as Amazon, BookMyTrain.com, Jubilant Foodworks, etc., to provide more exciting offers on the card. For example, passengers can use the card to order a pizza at some selected stations. The scope of the card is yet to be determined as government is working out ways to enhance the range of activities it covers. It is likely to be linked with e-catering, tourism, archeological websites, etc.
Difference between an ATM card, Debit card, and Credit card
ATM cards, debit cards, and credit cards are payment cards issued by a bank which allows customers to perform certain specific transactions. Not only does it make your purchases smooth and convenient, but some retailers require it for billing purposes. Banks these days are trying to add more value to the services offered by them and hence the cards come with a lot of offers and discounts. The most striking feature of card transactions is that it is secure and it reduces the need to carry hard cash. Given below are some of the main differences between an ATM card, debit card, and a credit card.
- ATM cards can be used only at ATM machines to withdraw cash
- You will require a Personal Identification Number(PIN) to carry out a transaction
- An ATM card is linked to your current account or savings account maintained in the bank
- The card does not offer credits and hence money is deducted on a real-time basis
- ATM withdrawals charge you a fees if the transaction is being carried out in an ATM machine of a different bank
- Debit cards come with almost every feature of a credit card even though it doesn’t allow credits
- Just like an ATM card you will require a four digit Personal Identification Number to complete your purchases
- In addition to ATM machines, your debit card can be used at stores or restaurants and can also be used for online payments
- There are usually two types of debit cards—Visa debit cards and MasterCard debit cards.
- Much like ATM cards, the debit card allows you to use the money from your savings account
- It is different from a credit card as the customer does not have to pay interests or make a repayment schedule
- Though credit cards facilitate ATM withdrawals, it is mostly used like a loan option and is issued by the bank after reviewing your creditworthiness
- Your credit score impacts your credit card application. Too many credit card applications may have a negative effect on your overall score
- It allows you to purchase any product that is within your spending limit and make payments later
- It offers attractive discounts on certain brands and services
- Besides standard and premium versions, there are many variants in credit cards which offer a wide range of activities, right from shopping and dining to booking an air ticket
Transaction charges on debit card payments
In a survey conducted in 2015, it was revealed that there were around 61.5 crore debit card users and 2.3 crore credit card users in the country. Generally, customers pay a transaction cost on debit card payments which is also known as merchant discount rate (MDR). In a move to increase cashless transactions post demonetization, the government had notified banks to not charge customers for debit card transactions till December 31.
Safety Tips for First-Time Debit Card Users
As per RBI guidelines, banks issuing the debit cards are responsible for keeping the information of their customers safe. But there have been multiple instances of data breaches due to negligence on the part of debit card users as well. Listed below are some of the dos and don’ts for first time users of debit card.
- Sign on the back of your debit card as soon as you receive it. Your card is considered authentic only if you fix your signature in the space provided on your card.
- Sometimes fraudsters may jam the Enter and Cancel button in an ATM machine to put your transaction on hold. In such cases, do not leave the ATM counter without cancelling the transaction.
- Make sure that you have memorized your debit card PIN. Do not write down your debit card PIN number anywhere.
- While making a transaction at an ATM counter, make sure that no one else is there with you.
- As an enhanced security measure, keep changing your debit card PIN from time to time.
- If you are withdrawing cash from ATM located in an open space, ensure that you hide the PIN combination while making the entry.
- Dispose your old debit cards if you are not using them anymore.
- Do not dispose balance receipt in the ATM counter itself. Hackers and fraudsters can use this information to gain access to your bank account.
- Track your account transactions on a regular basis. This will help you in identifying any unusual activity in your account.
- Register for email or SMS alerts. This will help you in staying up to date with your transactions.
- While transacting at petrol bunks, restaurants, and similar places, ensure that your debit card is swiped in the POS machine only in your presence. Otherwise, there are chances of your information being skimmed. Skimming is the process of duplicating a debit card with the use of a skimming device.
- In case you doubt a skimming device being installed in an ATM machine, refrain from making any transaction and inform the concerned authorities immediately.
- Get your debit card blocked immediately, in case it is lost or stolen. You can do so by calling the bank on their hotline number.
- Whenever you receive an email or a call asking for your account details or debit card information, report the incident to your bank.
- You bank will never ask for your debit card information. Never share your information with anyone over phone, call, or message, even if the person claims to be from the bank.
- While shopping online with your debit card, make sure that the website of the e-tailer starts with ‘http’. This is a sign that the website is secure and genuine.
- Do not save your debit card details on merchant websites for ease of making payments. Because in case the website is hacked, you will be at the risk of losing your baking information to hackers and fraudsters.
Top Banks providing Debit Cards in India
Indian consumers can choose from a wide range of debit cards offered by various Indian banks tailor made to suit their banking requirements. The list of banks are as follows
- State Bank of India Debit Card
- HDFC Bank Debit Card
- ICICI Bank Debit Card
- Axis Bank Debit Card
- PNB Debit Card
- Canara Bank Debit Card
- Bank of India Debit Card
- Bank of Baroda Debit Card
- Union Bank of India Debit Card
- Syndicate Bank Debit Card
- HSBC Debit Card
- IndusInd Bank Debit Card
- Citibank Debit Card
- Standard Chartered Debit Card
- YES Bank Debit Card
SBI provides an eclectic array of Visa, MasterCard and RuPay debit cards customizing the card features depending on the customer’s needs. State Bank of India offers 10 different debit cards comprising of personal and business cards.
Hassle-free cashless shopping with HDFC debit cards and secure online transactions can be done with on Visa and MasterCard SecureCode platforms. Eleven debit card alternatives are offered by HDFC to Indian customers.
Pick an ICICI bank debit card of your choice and customize it with an image that is a reflection of your personality. ICICI customers can choose from an extensive selection of 31 cards categorised under Premium, Personal, Business, Expressions and Unifare.
Axis Bank debit cards are packed with privileges and offers and customers also have the option of designing their own debit card. The bank offers a total of 17 debit cards categorised as Business, commercial, premium and other segment cards.
PNB debit cards are offered in collaboration with MasterCard and RuPay and are accepted at multiple merchant outlets worldwide. Customers can choose from 5 different types of debit cards along with add-on card if required.
Customers can enjoy the convenience of cashless shopping with a Canara Bank MasterCard or Visa debit card. Offered in two variants the Canara Bank debit card comes loaded with exclusive privileges and features.
Offered on MasterCard, Visa and RuPay payment platforms, the Bank of India debit card is a one-of-a-kind card which is valid for domestic and international transactions. With a wide assortment of cards totalling upto 14, BOI debit cards are customised to suit the needs of every Indian consumer.
Bank of Baroda offers six different types of personalized debit cards in association with Visa, MasterCard and RuPay to suit the lifestyle requirements of customers.
Union Bank of India provides international debit cards with multiple account access and add-on cards on the Verified by Visa (VbV) platform. Union Bank provides two types of debit cards to customers including a RuPay debit card.
Customers can transact in a currency of their choice but pay in Rupees using their Syndicate Bank Global Debit Card. With half a dozen debit cards, Syndicate Bank tries to offer convenience and efficiency to its banking customers.
HSBC offers Visa based debit cards to personal banking customers and HSBC debit cards can be used at multiple merchant outlets and ATMs worldwide. HDFC offers 11 types of debit cards and customers can choose a debit card depending on their savings account.
IndusInd bank offers a mix of international and platinum debit cards on the Verified by Visa platform along with an exciting rewards program for customers. The bank offers four different types of debit cards depending on the account held.
Citibank offers debit cards along with savings accounts and customers can enjoy unlimited benefits and add-on features with their Citibank debit cards.
Access your bank accounts from anywhere in the world, enjoying attractive privileges and offers with a Standard Chartered debit card. Offered in seven different variants, a standard Chartered debit card is a must-have card.
YES Bank offers two variants of international MasterCard debit cards namely - Gold and Silver, with unparalleled benefits. YES Bank provides four types of debit cards depending on the customer’s requirements.
With the advent of debit cards in the 1970s, a consumer’s life became much simpler. Gone are the days when shoppers across the globe used to carry wads of cash in their wallets and stand in long queues to withdraw money from their banks. Payments these days are done with just a swipe or a tap of a card. Older generations would probably have faced challenges like falling short of cash and not having enough to cover a bill but today users would just pick up their debit cards to pay up in a matter of minutes. The popularity of ‘plastic money’ or a debit card has increased phenomenally with financial institutions issuing them with personalized features and designs. As an easy alternative to cash, debits cards are useful to manage your day-to-day expenses, allowing you to plan your budget without overspending. The biggest advantage that a debit card offers to a user is that during every transaction the money is drawn from the customer’s bank account that the card is linked to. Debit cards have been increasingly used for online transactions or purchases on secure payment platforms offered by banks as part of their e-banking solutions.
Almost every bank in India offers debit cards with different features and benefits depending on the bank account held by the user. Generally these debits cards are issued in collaboration with various payment platforms to provide a secure platform for users to transact on. The most common payment platforms used by banks in India include the following
Debits cards are generally linked to a particular bank account belonging to a customer. Banks provide customers with debit cards for every savings, current or overseas accounts they open. In some cases a single debit card can also be linked to multiple bank accounts. A debit card allows a user to purchase goods at merchant outlets or online stores and also doubles up as an ATM card to perform various bank transactions and withdraw cash. When a debit card swipe happens, the money comes directly out of the customer’s bank account and is immediately transferred to the merchant. Instant payments with instantly available cash. Unlike credit cards, debit cards do not require bill payments on a later date as the money is paid then and there. Debit card users receive monthly statements which give them an idea about their card spends and ATM transactions, helping them track and plan their expenses.
‘PIN’ stands for Personal Identification Number. A debit card PIN is a four digit numerical code, provided as a security feature while performing card purchase transactions. When a customer opens a savings or a current account, the bank provides a debit card along with the corresponding PIN to be used while transacting using the debit card. Customers have the option of changing or setting PINs of their choice if they have forgotten or lost their current PINs. The Reserve Bank of India mandates the use of PIN while making purchases at merchant outlets using debit cards as a security measure. Banking customers are always advised to keep their PINs safe and not share it with other individuals as a move to provide protection to their bank accounts.
Customers holding savings or current accounts must always choose a debit card suitable to their accounts and the expenses they would incur. Compare a few debit cards before you actually make your choice. Understand what each card offers, the fees levied, the services offered and the minimum balance requirements before signing off on a card. Additionally some debit cards also offer rewards programs and these would be beneficial to higher spenders. Also make sure that while performing e-commerce or online transactions, the bank and the payment platforms are secure to avoid any fraudulent activity on your debit cards. Always choose a card best suited to your financial needs and not because the card is packed with privileges and offers.
Debit cards serve different purposes, and are convenient to use. It relieves us of the burden of carrying a cash heavy wallet around. But as every good thing comes with a flipside, debit cards are easily susceptible to fraudulent attacks. It is true that every debit card transaction is conducted through secure platforms yet they are susceptible to all kinds of hacking and cyber-attacks. To avoid being a victim of debit card frauds, you need to know how to use your debit cards safely.
Here are a few useful tips to prevent misuse of your debit card -
Keep your PIN a secret - The first rule that governs the usage of a debit card is to keep your debit card PIN safe and secure. Memorise the 4 digit PIN by heart, and make sure that you don’t write it down anywhere, or share it with anyone. Also, never give your PIN to anyone over the phone, email, social media, and such like.
Report loss of your Debit Card - Loss of card should be immediately reported to the financial institution to hot list the card, in an effort to prevent fraud.
Keep an eye on your email - This is the easiest and most common way to identify fraudulent transactions, if any, occurring via your debit card. As soon as a transaction is made using the card, an email is generated intimating the cardholder about it.
Follow RBI’s mandate - Make sure that you authenticate every PoS transaction by entering your PIN and completing the entire purchase transaction.
Make online payments through secure platforms - With the advent of online shopping, cyber safety has become a cause of deep concern. You have to be cautious while carrying out a transaction online and paying via your debit card. Look for secure online payment symbols, and ensure that you use your debit cards only on secure websites asking for authentication. The two-tier authentication process that secure sites require is a measure to prevent debit card credentials from getting leaked.
Follow SMS alerts - An easy way to keep a track of your debit card spend is to set-up alerts from your bank in the form of SMS or mail statements containing details of every single purchase or transactions you have done.
Keep your card protected - If the magnetic strip behind your card gets damaged, you cannot carry out any transactions by swiping your card. Please make sure that you do not expose your card to dirt, sharp objects, and other magnetic objects.
Keep a track of your money in the account -Review your account statement often to know where and how much have you been spending. If you come across any unauthorised transactions, report it to the bank, immediately. This can be a significant step in preventing you from becoming a victim of fraudulent transactions.
- Debit cards are a convenient alternative to cash. They are easy to carry and can be handled easily. Since you do not have carry cash or cheque book if you have a debit card, it is a safe option when travelling.
- Debit cards can be used to withdraw cash from an ATM and also for merchant transactions at Point of Sale (PoS) terminals. A debit card ensures instant transfer of funds and receipts of services.
- With banks offering exciting features like bonus points, cash back offers, free insurance coverage and an array of redeeming options for accumulated points, debit cards will make your whole purchase experience more rewarding.
- Debit cards encourages a habit of responsible spending since the cardholder can only utilize their own money within account limits. It also helps in better budgeting and money management since the transactions are recorded.
- A debit card offers greater security and thus decreases the chances of fraud, theft and misuse.
- You can easily keep tracks of your spends with features like email and SMS alerts that contain details of transactions done using the debit card. Many banks also allow you to customize the add-on benefits to gain the maximum from your debit card.
How do I apply for a debit card on BankBazaar.com?
BankBazaar provides an easy online process to apply for any debit card of your choice with instant e-approvals. Customers can also compare the different debit cards offered by banks and pick what they find suitable for themselves. The BankBazaar home page displays a Finance menu and customers can choose the debit cards option under the ‘Cards’ drop down list. Users will be then taken to a page containing links to specific debit card and credit card pages. Clicking on the debit card link will take them to an info page on debit cards. BankBazaar customers can understand what each card offers and select the card they want. Clicking on ‘Apply now’ will submit the customer’s application to BankBazaar and they will receive an immediate e-approval via email. Their application will then be forwarded to the bank for further processing.
Q.Can multiple accounts be linked to a debit card?
A.Yes, some banks give customers the option of linking several bank accounts to a single debit card.
Q.Do banks block debit cards if customers enter the wrong PIN during cash withdrawals?
A.Yes, any bank would block a customer’s debit card after three unsuccessful attempts at an ATM as a protective measure.
Q.Is the overdraft facility available with debit cards?
A.Overdraft facility is available with the savings account linked to a debit card but is not applicable on a particular debit card.
Q.What are the different costs associated with a debit card?
A.Some banks might charge issuance fees, ATM withdrawal charges and annual fees for the usage of debit cards.
Q.In India, what are the two types of debit cards generally issued to users?
A.Indian Banks provide personalized and non-personalized variants to debit card users. Personalized debit cards additionally contain the user’s name and photograph. Non-Personalized cards will just have the bank logo, card details and the payment platform logo without any user related information.
- Debit Cards Vs Credit Cards
- Debit Cards for Fuel
- Debit Cards for Online Shopping
- Prepaid Cards for International Travel
- Debit Cards for Movie Tickets
- Debit Cards for Students
- International Debit Cards
- Debit Cards for Shopping
- Debit Cards for Restaurants
- Debit Cards for EMI
- New ATM Transaction Charges
Karnataka rolls out new Platinum debit card with special features
In a bid to add more benefits and features for their customers, Karnataka Bank has rolled out the new 'MoneyPlantTM Rupay' international platinum debit card. The card comes with special features such as enhanced withdrawal limit to Rs.75,000, transaction limit of Rs.2 lakh, accident insurance coverage of Rs. lakh, domestic and international withdrawal features, airport lounge access across the globe and fuel surcharge waiver.
7th April 2017
RBI to introduce final guidelines on debit card MDR charges
In an attempt to encourage digital transactions, RBI (Reserve Bank of India) will very soon introduce the final guidelines on Debit Card MDR (Merchant Discount Rate) charges. According to the current guidelines, MDR for Debit Card payments inclusive of payments made to the government, is set at 0.25% for transactions that are worth up to Rs.1,000, while for transactions between Rs.1,000 – Rs.2,000, the charges are capped at 0.5%. For transactions, the MDR cap is set at 0.75% for transactions below Rs.2,000, while it is 1% for transactions above Rs.2,000. According to the draft guidelines that were released in February, the proposed MDR charge is 0.40% of the transaction value for merchants that have an annual turnover of Rs.20 lakh as well as special category merchants, like mutual funds, educational institutions, insurance, utilities, and government hospitals. The draft also proposed that banks will have to ensure that merchants display a sign saying, “No convenience or service charge is payable by customers”.
7th April 2017
Samsung Launches its Payment Solution Samsung Pay in India
The much awaited payment solution of Samsung has come live and it is supported by a number of banks. Samsung Pay accepts payments made through debit and credit cards of Axis Bank, HDFC, ICICI, SBI, and Standard Chartered. It also has tied up with the e-wallet provider Paytm for payment services. You can register for the service through the official website of Samsung Pay. Samsung Pay works on both NFC and MST equipped POS devices and is currently supported on the following smartphones — Samsung Galaxy S7 Edge, Samsung Galaxy Note 5, Samsung Galaxy S6 Edge+, Samsung Galaxy A7 (2016), and Samsung Galaxy 15 (2016).
8th March 2017
Fuel retailers to bear MDR charges on usage of debit cards for fuel purchase
Oil companies such as Indian Oil Corp Ltd., Hindustan Petroleum Corp Ltd., and Bharat Petroleum Corp Ltd. have agreed to bear the merchant discount rate (MDR) when fuel is purchased using debit cards. This takes the burden of MDR payment off the shoulders of fuel buyers and dealers.
MDR is a fee that is levied for usage of cards at swipe machines. The fee is charged at the rates of 1% for credit card transactions and 0.25% to 1% for debit card transactions. The fee is levied at the time of purchase and is paid to the bank.
MDR was waived off till 31st December, 2016 post demonetisation, in an attempt to encourage cashless transactions. However, in January, when banks demanded that the service is reinstated, the petroleum dealers’ associations refused to pay.
The Government, acting as a mediator, brought the concerned parties to the table and a decision was taken. The current proposal is that oil marketing companies (OMCs) would bear the charges up to 31st March, 2017. OMCs have not decided whether they would approach the Government for compensation for the revenue losses incurred.
28th February 2017
Charges on Debit Card Usage Might Come Down
Continuing the digitalization mission in India, the RBI is working towards bringing down the Marginal Discount Charges (MDR) for all transactions above Rs.2,000 carried out on debit cards. With high volumes of digital transactions, Finance Minister Arun Jaitley stated that the charges would come down. Currently, the RBI has stipulated that for cash transactions up to Rs.1,000, the MDR is 0.25% and for transactions up to Rs.2,000, the MDR is 50%. Reducing the charges associated with debit card usage would encourage more people to go cashless.
9th February, 2017
Link your mutual fund investments to a debit card
Investors can now link their mutual funds to a debit card, which can be used to withdraw money from an ATM or to carry out transactions at a PoS (Point of Sales). Although this is not a new facility and was already being offered by Reliance Asset Management Co. Ltd., two robo-advisory platforms – Scripbox and FundsIndia will also provide this facility. These companies will allow investors to park any excess funds in Reliance Money Manager Fund through them. After which, you have the option to link the fund to a Visa Debit Card issued by HDFC Bank. There are no charges on this card. The concept behind this facility is to familiarise the way a mutual fund functions and to allow investors a complete access to their fund money.
24th January 2017
Move by postal department to benefit 1 lakh debit card holders in Allahabad
The postal division of Allahabad has started extending inter-operable services to meet the demand of the people. There are over 35,000 debit cards circulating in Uttar Pradesh. This move by the postal service has been made to help negate the extra time spent standing in queues outside ATMs. Sunil Kumar Rai, Director of Postal Services, Allahabad, has said that the number of people who own debit cards do not match the number of ATMs in the state. The inter-operability recourse will help over 1 lakh account holders in the Allahabad division. Postal banks are being set up to house this solution. The department also said that payment of taxes and bills related to water, electricity, mobile, and telephone can be made through these postal banks.
19th January 2017
MDR charges being levied on debit card payments
Without any clear direction given by the Reserve Bank of India (RBI), a few banks have begun to impose transaction fees on debit cards. A few other banks, like Citibank, have waived Merchant Discount Rates (MDR) till the 15th of January. Citibank has also waived off charges that were imposed on ATM withdrawals. Before demonetisation, customers of various banks were allowed to make a maximum of 5 free-of-charge transactions. Post demonetisation, most banks had waived off this transaction charge. RBI has lowered MDR charges that were levied on payments to 0.25% for payments made up to the tune of Rs.1,000 which are made using debit cards. A charge of 0.5% would be levied on transactions between Rs.1,000 and Rs.2,000. This move by the RBI was made to mainly promote online banking.
18th January 2017
Cashless transactions won't be accepted at petrol bunks from midnight
Credit and debit card transactions will not be accepted at petrol bunks from midnight as banks have made a bold move to levy an extra transaction charge on the dealers for these transactions. Petrol bunks all over the country are not going to accept cards from HDFC, Axis Bank, and ICICI as these were the banks that made the move with these extra charges. According to the All-India Petroleum DealersAssociation (AIPDA), the extra charge of 1% on each transaction will cause a huge blow in profits for the dealers as their margins are already relatively less. The association said that this move will cause a lot of trouble for the customer but since they had no option, they had to go ahead with their decision. With demonetisation of higher currency notes of Rs.500 and Rs.1,000, cashless transactions at petrol bunks have gone up.
9th January 2017
Debit Card and ATM transaction fees are back
Customers are unhappy with the government as it has not rolled back Debit Card or ATM transaction usage fees, post demonetisation. The Managing Director of NCR Corporation, India and South Asia, Navroze Dastur, stated that the industry was expecting the waiver to stay even after the end of December. However, the RBI has stayed tight-lipped on ATM transaction charges, which caused banks to charge the same. The first five transactions in an ATM will not be charged any fee, while any transaction thereafter will be charged as per the discretion of individual banks and the category in which the customer belongs. Many banks had waived off these fees for its premium customers, even before demonetisation.
According to V Balasubramanian, president of transaction processing and ATM service, FSS, availability of cash is limited and there are only around 20% ATMs functioning. He also added that the government should consider subsidising digital transactions by coming up with the Dipayan fund, as suggested by Ratan Watal.
5th January 2017