‘Banks, OMCs to bear card payment charges at petrol pumps’

Written by January 12, 2017 19:12

New Delhi, Jan 12: Amid the stand-off between banks and petrol pumps over digital payments, the Oil Minister Dharmendra Pradhan today announced that consumers won’t need to pay any extra charge for card transactions.

Oil minister speaks about hike in fuel prices

The Minister said that the banks and Oil Marketing Companies (OMCs) will bear transaction charges for fuel bought using cards at petrol pumps.

“The decision is very clear. Consumers will not be burdened with Merchant Discount Rate (MDR). Retail outlets (petrol pumps) will also be kept out of its purview. Now it is between banks and OMCs how they share it,” he said.

Pradhan was speaking to reporters after attending a meeting on the issue that was called by the Department of Financial Services, Ministry of Finance.

“It is a commercial decision and they (banks and OMCs) will sit together and sort it out,” he said.

Petrol price today touched a record high of Rs 76.24 per litre and diesel climbed to its highest ever level of Rs 67.57 as the oil PSUs passed on four weeks of relentless rise in international oil prices to consumers.

MDR is a charge levied on merchants by banks for accepting payments through credit and debit cards. This charge was passed on to consumers but post-demonetization, the government, in a bid to promote digital payments, waived it till December 30.

Banks had decided to pass on the MDR to petrol pump operators but the petrol pump owners threatened to stop accepting card payments, forcing the government to broker a settlement.