in ,

Good News: No More Surcharge or Service Charge on Card and Digital Payments

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the withdrawal of surcharge, service charge and convenience fee imposed by different government departments and organizations on card and digital payments.

This step has been taken with the view of discouraging cash transactions. The cabinet also approved mandating card or digital payments beyond a given threshold.


Source: Flickr

“The promotion of payments through cards and digital means will be instrumental in reducing tax avoidance, migration of government payments and collections to cashless mode,” said an official statement.

Partner Story
#MGChangemakers - Episode 2: THE 21-YEAR JOURNEY OF CHANGE | Driving India Into Future

Live Now #MGChangemakers Episode 2 : Touched by poverty, untouchability and atrocities against Musahar- the Mahadalit community of Bihar, Padma Shri Sudha Varghese decided to dedicate her life for their upliftment. Watch the video to learn about her inspirational journey & how she is ‘Driving India Into The Future’. #MGChangemakers powered by MG Motor India and supported by United Nations India. Show your support by donating now:

Posted by TheBetterIndia on Wednesday, July 18, 2018

The government will also rationalise the Merchant Discount Rate (MDR) — the fee charged by a bank for debit and credit card services. Other steps being taken to reduce cash transactions include rationalization of telecom service charges for digital transactions, introduction of appropriate acceptance infrastructure in government departments and promotion of mobile banking. To solve cases of fraudulent transactions without any delay, assurance mechanisms will be created and the payment ecosystem in the country will be reviewed for further improvements.

The government stated that several short term and medium term measures have been approved for implementation within one year and two years, respectively.

Like this story? Or have something to share? Write to us:, or connect with us on Facebook and Twitter (@thebetterindia).