All about Banking
Card Issuers in India in line with RBI’s advise to cap the Debit Card Merchant Discount Rate ((i.e the fee that the terminal deploying bank would have to pay to the card issuing bank), at 0.75% for transactions up to Rs.2000/-(up to Rupees two thousands only) and 1% for transactions above Rs.2000/- (above Rupees two thousands), have commenced the revision process.
Today, NPCI (National Payments Corporation of India)-RuPay issuers have announced the revised interchange fees. NPCI has also announced a revised switching fee for Point of Sale (POS) transactions done on the RuPay.
All the basic services on a card such as acceptance at ATM, Point of Sale, internet, IVR and funds transfer are features of the RuPay debit card.
Currently, only Debit Card features are part of the RuPay Card Scheme.
The highlights of the revision are:
01) Normal transactions up to Rs.2000/-(up to Rupees two thousands only) – 0.45%
02) Normal transactions above Rs.2000/-(above Rupees two thousands only) – 0.65%
03) Special transactions ie. Mutual Fund, Insurance, Education and Government – Flat fee of Rs10/-
The above charges would mean a cushion of 0.30% to 0.35% to the terminal deploying acquiring banks, i.e an attractive feature to deploy terminals for banks.
A peek as on June 30th 2012
No of transactions via ATM’s – 43,53,02,487 (Forty three crores, fifty three lacs, two thousand four hundred and eighty seven only)
No of transactions via 33042222 (Three crores, thirty lacs, forty two thousands two hundred and twenty two only)
Spread all over India, there are 1 crore + merchants who can be part of the POS world. Theoretically, 50% of ATM financial transactions can be part of the POS cycle. So, the immense potential can be well imagined for POS transactions in our country.
Further, NPCI has also revised its charges to issuing and acquiring banks.
a) 60 paise per transaction to the customer’s bank (issuing bank)
b) 30 paise per transaction to the acquiring bank.
This sub-one rupee switching fee has to be one of the lowest in the world.
Re-disseminated by Prashant n