The All India Bank Depositors Association of India has asked the Reserve Bank of India (RBI) to abolish the ‘Transaction Decline Fee’ on debit cards.
If you do not have sufficient balance in your bank account. In such a situation, you go to the ATM and try to withdraw cash from your ATM or pay with a debit card. So the bank charges you. These charges are charged from you as penalty. These are called Transaction Decline Fees. Now it is being talked about to end them.
Let’s know what is the whole matter
The Monetary Policy Committee (MPC) of RBI is scheduled to meet on February 3-5. The All India Bank Depositors Association of India has asked the Reserve Bank of India (RBI) to abolish the ‘Transaction Decline Fee’ on debit cards. The organization has demanded this from RBI Governor Shaktikanta Das before the RBI policy meeting. The association has termed this charge unfair.
The association said that it is unjust to impose such a heavy penalty on a customer who pays in a digital way. People distance themselves from digital payments because of this. This is more applicable in the case of people who come from weaker sections. There is not always enough balance in their accounts.
The association said that these charges are not only unfair but also against the principles of ‘Transaction Decline’. The main reason behind this is not like issuing checks to third-party. Instead it is like going to a depositor’s branch and trying to withdraw cash. Apart from this, there is no cost associated with the card issuing bank in such transactions.
How much money banks charge as transaction decliners?
As a ‘Transaction Decline Charge’ on a debit card, banks charge GST from people with Rs 25. This charge is charged as penalty. This happens when a person tries to withdraw cash from an ATM or a debit card payment if there is not enough balance in the account. You can call it the digital version of the check bounced charge.
Such a charge will have to be given on a failed transaction
State Bank of India- SBI, the country’s largest public sector bank, takes a penalty of 20 rupees from its customers in case of ATM transaction failure, which you have to pay with GST.
HDFC Bank- HDFC Bank charges 25 rupees as a charge if the transaction fails. Tell you that along with this, you also have to pay tax.
IDBI Bank- If a customer of a government-owned IDBI Bank (IDBI Bank) withdraws money from another bank’s ATM and the transaction fails due to low balance, then a charge of Rs 20 will be charged for each failed transaction. Also Read: PNB Customer Attention! 3 rules related to your account are going to change, you will not be able to withdraw money if you do not know
YES Bank- Account holders of Yes Bank have to pay 25 rupees in the form of balance.
Axis Bank customers also have to pay 25 rupees as a charge if the transaction fails from the ATM.