Demonetization: No service charge on use of debit cards till December 31, says govt

Even as ATMs continued to see long lines on day 14 of demonetization, the government on Wednesday said all digital transactions through smartphones will not be levied with service charges till December 31.

The move comes after the government reviewed the situation post demonetization of 500 and 1,000 rupee notes and decided to encourage digital payments.

Addressing the media, Economic Affairs Secretary Shaktikanta Das said, PSU and some private sector banks have agreed to waive off service charges on use of debit card till December 31."

"The MDR charges on use of debit cards, the charges being levied by the banks and the switching charges will stand completely waived. So, there will be no charge on use of debit cards," he added.

Das also said that the service charge on online booking of train tickets has been waived off till December 31 to encourage e-ticketing.

Stating that the RBI, banks, NABARD have been instructed to make available cash to cooperative banks to ensure farmers get credit and certain amount in cash, he added, "NABARD has sanctioned special limit of Rs 21,000 crore to district central cooperative banks to help agricultural credits."

Das also said that 82,000 ATMs had been re-calibrated so far and that all ATMs would be re-calibrated in few days.

On Tuesday, RBI introduced special dispensation for small merchants and doubled the limit of semi-closed Prepaid Payment Instruments (PPIs) to Rs 20,000 to facilitate digital transactions.