HC seeks Centre, RBI response on debit, credit card surcharge
The Delhi high court on Tuesday sought Centre and Reserve Bank of India’s (RBI) response on a plea alleging “illegal” surcharge levied on transactions done through debit and credit cards.business Updated: May 18, 2016 01:43 IST
The Delhi high court on Tuesday sought Centre and Reserve Bank of India’s (RBI) response on a plea alleging “illegal” surcharge levied on transactions done through debit and credit cards.
The petition filed in public interest has contended that public sector oil marketing companies discourage consumers from paying for petrol and diesel by credit and debit cards by slapping a surcharge on such transactions.
Advocate Amit Sahni further claimed that most of the merchants across the country levy a surcharge at the rate of 2.5 percent or more, which was “disincentivising the use of credit and debit cards”.
Sahni said no such charge was being imposed on cash payments. He said such surcharge was not only “illegal” but also promotes the circulation of black money in cash.
He has sought direction of the court to the authorities to frame guidelines, which bar charging of surcharge on the transactions made through debit and credit cards.
A bench comprising chief justice G Rohini and justice Jayant Nath issued notice to the ministry of finance as well as the RBI, directing them to file an affidavit before August 19, the next date of hearing.
First Published: May 18, 2016 00:35 IST