The Finance Ministry has withdrawn a ‘controversial
circular’ that asked all public sector banks to emulate HDFC Bank and charge a
processing fee on cash or cheque payments received for credit card dues.
In a letter to the chief executives of public sector
banks on March 14, the Under Secretary in the Department of Financial Services,
D. D.
Maheshwari, said that “the October 25, 2012, circular
stands withdrawn with immediate effect, following direction by the Secretary
(Financial Services)’’.
Mr. Maheshwari, had, on October 25, 2012, stated that in
view of the host of benefits available to all the stakeholders and to also
bring down the cost of banking services, the government and the RBI had taken
various initiatives for promotion of electronic mode for bank transactions. The
letter further stated that, to encourage bank customers to use electronic means
for banking transactions and to discourage use of physical/cash mode of
transactions, all PSU banks are urged to consider charging processing fee on
customers paying credit card dues either in cash or through cheque.
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