Retailers hail RBI decision to waive fees on debit cards

By

Maverick Martins

Published
Nov 24, 2016

Retailers have hailed the decision of the government to waive off transaction fees on debit cards and added that it would bring relief to them as majority retail transactions comprise of debit cards, according to a report in the Economic Times.
 

The Reserve Bank of India (RBI) on Wednesday decided to temporarily suspend the commission banks take from businesses against debit card transactions.
 
Viren Shah, president of the Federation of Retail Traders Welfare Association (FRTWA), said the move would bring big relief as a large chunk of retail transactions comprise debit cards.

“Amid the loss of business that followed demonetisation, it is welcome news. We hope that the supply of smaller denomination notes and tax benefits which we sought will also be implemented soon, to boost the market. In Lower Parel, 60% of the shops, including roadside hawkers, have installed e-wallets as the younger generation is using it in a big way,” said Shah.
 
“The temporary withdrawal of commission on transactions would also boost the demand for card swipe machines,” Shah added.

Nearly 40% of retailers and restaurateurs in Mumbai Metropolitan Region do not have the swipe machines. Following demonetisation, around 20,000 of them have already applied for the same, said industry associations.
 
Mohan Gurnani of the Chamber of Maharashtra Industry and Trade said amid the shortage of currency, suspending commission to banks has brought relief for traders and retailers as they will save considerably on their daily transactions to make up for the loss of business.