This is part 2 to capture public feedback on RBI’s latest discussion paper for charges in payment systems. In Part - 1, we discuss IMPS, RTGS, NEFT, Debit cards, Credit cards, Wallets/PPI and UPI.

Read part 1 here

In part 2, we need your feedback on intermediaries, surcharging, convenience fee and other aspects of payments.

This is a crucial time for all of us to be part of the future of payment systems in India. The central bank of India released a Discussion Paper on Charges in Payment Systems and is expecting public feedback.

RBI is asking for public feedback on these charges, and what they should be. Many media channels have focused on the possibility of charges on UPI, but there are 40 questions that seek feedback from the public and this is the time to make your vote count.

Whatever the results of the poll will be, if more than 200 people vote, we will collectively send it to the RBI. I have listed the services and RBI’s questions in the letter and divided them into two parts. Make sure you vote on them on both parts.

Please open this email in your browser by clicking here or on the iOS app with the link below to be able to vote.

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Intermediaries

• A Payment Aggregator (PA) facilitates acceptance of digital payments done using bank-issued or non-bank-issued payment instruments.

• A Payment Gateway (PG) provides the necessary plumbing for the digital payments’ architecture. While PAs handle funds, PGs only facilitate the processing of transactions.

• These intermediaries charge several types of fees to merchants and customers and RBI wants the public opinion on how to standardise it.

Questions regarding Intermediaries:

Surcharging & Convenience Fee

• Sometimes, certain shops will ask for 2% extra if you’re paying with cards. That is called surcharging. It is in theory not allowed, but many merchants impose it on their customers thereby reducing digital payment penetration.

• The convenience fee is an additional fee levied by service providers / online platforms over and above the cost of service. The convenience fee is usually a fixed fee irrespective of the booking amount but can vary based on the service availed.

• The convenience fee is normally transparent and disclosed upfront to customers, but surcharges are not.

Questions regarding surcharges and convenience fees:

Other Aspects

Here RBI asks for public feedback on other aspects of the Digital Payments transactions.

Q - What more transparency could be brought in for such charges?

This is the final question in the RBI discussion paper. You can leave your thoughts in the comments below and we will be sure to send them to the RBI.

If you took out time to answer these questions from the RBI, you have made an amazing contribution to the future of payments systems in the country.

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