Railway’s IRCTC bans several Banks from Debit Card Payment

Indian Railway Catering and Tourism Corporation (IRCTC) has reportedly banned several banks from using its payment gateway for debit cards transactions as the lenders denied to share the convenience fees charged from customers with IRCTC.

Post demonetisation, IRCTC had stopped charging Rs 20 convenience fee from customers. However, it expected the banks to share a fraction of the convenience fees that the banks charged the customers for availing the convenience of making online purchases of tickets, among others.

Earlier, IRCTC asked banks to share half of the convenience fees collected by lenders. It is learnt that The Indian Banks’ Association (IBA) is in the process of resolving the issue and is discussing the matter with IRCTC and the Indian Railways.

 IRCTC waived off the convenience fee of Rs 20, post demonetisation. “Every day we are losing 50,000 transactions,” a senior executive with State Bank of India (SBI) told

At present, the Indian Railway’s portal allows only Indian Overseas Bank, Canara Bank, United Bank of India, Indian Bank, Central Bank of India, HDFC Bank and Axis Bank cardholders to make card payments on the portal. The Indian Banks’ Association (IBA) is resolving the matter and is in discussion with IRCTC and the Indian Railways, the report added.

For railway ticketing and other passenger service transactions, the RBI guidelines which were issued on February 16, the transactions would attract a flat fee of Rs 5 for transaction values between Re 1 and Rs 1,000 and Rs 10 for transaction values between Rs 1,001 and Rs 2,000. Above Rs 2,000 will attract an MDR of 0.5 percent, with a cap of Rs 250 per transaction.

Usually, the merchant pays the convenience fee to the acquiring bank. However, since IRCTC waived off the charges, the banks were incurring extra cost, in turn recovering it from customers making the transaction.

1 thought on “Railway’s IRCTC bans several Banks from Debit Card Payment

  1. The unilateral decision of Irtc is unjustified by not accepting all banks debitcard.This is against digitalisation era.The customers account may be chaarged for actual expenses incurred.No customer is denying.The railway has to obey the instructions of Rbi and IBA.A concrete decision is required for sucess if digital ers.

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