Tag Archives: debit card

refund of digital payment charges

Central Board of Direct Taxes (CBDT) has issued a circular no. 16/2020 directing banks to refund the charges they have collected on digital transactions after 1/1/2020. Digital transactions could be via internet banking, NEFT, RTGS, or UPI, debit card powered by RuPay, BHIM-UPI. Gist of CBDT circular follows:

In furtherance to the declared policy objective of the Government to encourage digital transactions and move towards a less-cash economy. the Finance (No. 2) Act 2019 inserted a new provision namely section 269SU in the Income-tax Act, 1961 (“the IT Act”), which provides that every person having a business turnover of more than Rs. 50 crores during the
immediately preceding previous year shall mandatorily provide facilities for accepting payments through prescribed electronic modes. Further, a new provision namely section 10A was also inserted in the Payment and Settlement Systems Act 2007 (“the PSS Act”), which provides that no Bank or system provider shall impose any charge on a payer making payment, or a beneficiary receiving payment, through electronic modes prescribed under
section 269SU of their IT Act. Subsequently vide notification no. 105/2019 dated 30.12.2019 (i) Debit Card powered by RuPay; (ii) Unified Payments Interface (UPI) (SHIM-UPI); and (iii) Unified Payments Interface Quick Response Code (UPI QR Code) (BHIM-UPI QR Code) were notified as prescribed electronic modes under section 269 SU of the IT Act.

  1. A circular no. 32/2019 dated 30.12.2019 was issued by the Board to clarify that based on section 10A of the PSS Act, any charge including the MDR (Merchant Discount Rate) shall not be applicable on or after 01 ” January, 2020 on payment made through prescribed electronic modes. However, representations have been received that some banks are imposing and collecting charges on transactions carried out through UPI. A certain number of transactions are allowed free of charge beyond which every transaction bears a charge. Such practice on part of banks is a breach of section 10A of the PSS Act as well as section 269SU of the IT Act. Such breach attracts penal provisions under section 271 DS of the IT Act as well as section 26 of the PSS Act.
  2. Banks are, therefore, advised to immediately refund the charges collected, if any, on or after 1″ January, 2020 on transactions carried out using the electronic modes prescribed under section 269SU of the IT Act and not to impose charges on any future transactions carried through the said prescribed modes.

Leave a comment

Filed under tax laws

incompetent bankers

Yesterday was a harrowing day, the whole day spent in dealing with incompetent bankers at ICICI Bank Limited. We had to do an online transaction for processing of Canadian visa on the Canadian government website https://www.canada.ca/en/immigration-refugees-citizenship/services/application/check-status.html

The payment was to be made in Canadian dollars from my credit card or debit card, but every time i tried to make the payment i was getting an error – Transaction Declined with some error code 481 with credit card and 476 with debit card. This happened umpteen no. of times.

This happened on Friday night, Saturday whole day, Sunday and Monday morning as well. So i go to the nearby ICICI Branch office to explain my woes. The Branch Manager there was totally blank, she said it may be due to forex market closed during the weekends and then pressed me to make local payment so that they can take care of the transaction from their end. I told her, it was an online payment on a government approved website for a visa, so there was no question whatsoever of making payment through internet banking or any other method. Then they asked me to call customer centre, which is a joke in ICICI Bank. First of all it takes ages to reach the human at the call centre, then all that person does is transfer call from one department to another. Yes, they are very eager to transfer calls to another department. They never understood my problem, so when i became difficult, they just put the call on hold for some ICICI ads for minutes on end.

Then started the desperate rounds of finding a solution to this problem with contact friends and relatives who knew somebody who knew somebody higher up in ICICI bank. That also did not help, because every body had their own solutions, which was useless. The fact is that ICICI Bank staff had absolutely no clue about my issue and were giving me off the desk solutions which had no relevance whatsoever .

Desperate twitter to ICICI handle with copies to RBI, PMO, Finance Minister, Finance Ministry, Narendra Modi did not help because apparently ICICI Bank cares two hoots about these honorable gentlemen. Mail to their customer.care@icicibank.com also did not help, because, again useless bunch of incompetent idiots sitting at that end and giving me garbage replies.

In the end, my problem got sorted because i asked a friend to make payment from his end, but the fact remains that ICICI Bank were totally clueless about the situation at hand. The fact remains and it is appalling to say the least that we have some absolutely incompetent people sitting in ICICI Bank. Few people did try their best, like one staff at the branch level and a couple of guys who did understand the problem but had no solution or gave a solution, which was outside the system. Overall the customer service at ICICI Bank is pathetic to say the least.

And it was not a Siberian thing also, many people apply for Canadian visa on the govt. site and all of them pay via online only, their payments are going through, how come nobody in the bank knows anything about it. All of them are working in silos, nobody knows lot of things.

Leave a comment

Filed under Uncategorized