<p align="justify">Consumers don’t have to pay a transaction fee on credit and debit card payments at petrol pumps, the government said on Monday.<br /><br />The Centre and the oil companies are working on an arrangement to share the fee banks collect on such transactions, Petroleum Minister Dharmendra Pradhan said on Monday.<br />Dealers are also exempted from paying a fee for now.<br /><br />The MDR (merchant discount rate) charge is levied on dealers under RBI guidelines, he explained.<br /><br />“But who will take the hit? Banks and oil marketing companies are discussing this,” Pradhan told reporters after meeting Finance Minister Arun Jaitley to address the question.<br /><br />“But I assure you there will be no levy on digital transactions at petrol stations even after January 13,” he said.<br /><br />Dealers had threatened to stop selling fuel against cards on that date. The fee is a matter between banks and oil marketing companies, and they will find a way out, Pradhan said.<br /><br />He rubbished the claim that oil marketing companies stand to lose Rs 5,000 crore on account of the 0.75% discount on card payments announced by the government. <br /><br />The All-India Petroleum Dealers’ Association had said on Sunday three private banks had started levying the extra charge, and threatened a boycott of their cards.<br /><br />The banks charge between 0.25% and 1% on credit and debit card transactions. <br />Separately, Jaitley said he had asked the secretary of the department of financial services to discuss the problem with the banks.</p>.<p align="justify"><em>Crisis averted</em></p>.<p align="justify"><em>On Sunday night, dealers had threatened not to sell fuel against card payments, in response to some private banks saying they would reintroduce the 1% transaction fee.<br /><br />The government had announced a 50-day waiver of the MDR (merchant discount rate) on digital transactions after the November 8 note ban. The banks are keen to reintroduce the charge, now that the holiday is over. <br /><br />The crisis triggered by the dealers’ announcement on Sunday was averted with the intervention of the petroleum minister, who spoke to representatives of banks, dealers and oil companies.</em> </p>
<p align="justify">Consumers don’t have to pay a transaction fee on credit and debit card payments at petrol pumps, the government said on Monday.<br /><br />The Centre and the oil companies are working on an arrangement to share the fee banks collect on such transactions, Petroleum Minister Dharmendra Pradhan said on Monday.<br />Dealers are also exempted from paying a fee for now.<br /><br />The MDR (merchant discount rate) charge is levied on dealers under RBI guidelines, he explained.<br /><br />“But who will take the hit? Banks and oil marketing companies are discussing this,” Pradhan told reporters after meeting Finance Minister Arun Jaitley to address the question.<br /><br />“But I assure you there will be no levy on digital transactions at petrol stations even after January 13,” he said.<br /><br />Dealers had threatened to stop selling fuel against cards on that date. The fee is a matter between banks and oil marketing companies, and they will find a way out, Pradhan said.<br /><br />He rubbished the claim that oil marketing companies stand to lose Rs 5,000 crore on account of the 0.75% discount on card payments announced by the government. <br /><br />The All-India Petroleum Dealers’ Association had said on Sunday three private banks had started levying the extra charge, and threatened a boycott of their cards.<br /><br />The banks charge between 0.25% and 1% on credit and debit card transactions. <br />Separately, Jaitley said he had asked the secretary of the department of financial services to discuss the problem with the banks.</p>.<p align="justify"><em>Crisis averted</em></p>.<p align="justify"><em>On Sunday night, dealers had threatened not to sell fuel against card payments, in response to some private banks saying they would reintroduce the 1% transaction fee.<br /><br />The government had announced a 50-day waiver of the MDR (merchant discount rate) on digital transactions after the November 8 note ban. The banks are keen to reintroduce the charge, now that the holiday is over. <br /><br />The crisis triggered by the dealers’ announcement on Sunday was averted with the intervention of the petroleum minister, who spoke to representatives of banks, dealers and oil companies.</em> </p>
