The Finance Ministry has withdrawn a ‘controversial circular’ that asked all public sector banks to emulate HDFC Bank and charge a processing fee on cash or cheque payments received for credit card dues.
In a letter to the chief executives of public sector banks on March 14, the Under Secretary in the Department of Financial Services, D. D. Maheshwari, said that “the October 25, 2012, circular stands withdrawn with immediate effect, following direction by the Secretary (Financial Services)’’.
Mr. Maheshwari, had, on October 25, 2012, stated that in view of the host of benefits available to all the stakeholders and to also bring down the cost of banking services, the government and the RBI had taken various initiatives for promotion of electronic mode for bank transactions.
The letter further stated that, to encourage bank customers to use electronic means for banking transactions and to discourage use of physical/cash mode of transactions, all PSU banks are urged to consider charging processing fee on customers paying credit card dues either in cash or through cheque.
