Several government agencies and public utilities are disincentivising e-payments by refusing to bear transaction costs charged by banks even as the Modi administration promotes digital India. Banks are passing on the cost of online payment to customers in several e-portals.
In some cases, not only are charges being illegally passed on, the amount is also higher than what banks are allowed to charge merchants as fees.
Electricity consumers in Delhi have to pay 1 per cent extra on their bill amount when they make payments through UPI. Consumers of Tata Power end up paying a surcharge when their bills are over Rs 2,000 in Mumbai and Rs 5,000 in Delhi.
For train tickets booked on IRCTC, the most widely used e-commerce portal, customers are charged Rs 10 plus GST for UPI transactions over Rs 2,000.
These are only illustrative examples and there are many other instances of agencies where the surcharge is passed on to customers. Read More