2% charges on debit card swipe. RBI Rules

Folks ,

yesterday i had been to a shop to purchase clothes for me .

the bill was around 1000 INR and shopkeeper asked for mode of payment .

the moment i said “card”, he said there will be 2% charges extra on the bill .

i asked “why” and he replied because banks will charge us for this .

I tried to tell him that you are not supposed to charge customers for whatever additional charges YOU have to pay to bank.

he kept arguing . he said this rule is not yet implemented.

i showed him the RBI rule , but still he was not convinced . i told him this time i will pay by cash , but next if i visit your shop and pay by card , and if you charge me extra for nothing, i will not keep quite .

OK here is the thing. banks and merchants have mutual contract for using swipe machines and charges should not be levied on customers.my bill amount was less but think about someone who makes a purchase of 50k or higher for any product.. that’s unfair practice

below is the rule. read it carefully

. Levying fees on debit card transactions by merchants – There are instances where merchant establishments levy fee as a percentage of the transaction value as charges on customers who are making payments for purchase of goods and services through debit cards. Such fee are not justifiable and are not permissible as per the bilateral agreement between the acquiring bank and the merchants and therefore calls for termination of the relationship of the bank with such establishments.

5. Though many banks have appreciated our concerns and have discontinued with the above mentioned practices/ products, some of them still seem to persist with them. These practices/ products thwart the very principle of fair and transparent pricing of products which beholds customer rights and customer protection, especially, in the more vulnerable retail segment. Such practices thus violate, both in letter and spirit, various provisions of our MC on Interest Rate on Advances and therefore, you are advised to strictly desist from these practices hence forth.

have you come across any such instances ??  comment me back on comment section


People buy things on credit. Own Credit cards, apply for loans and few people have excess of debts.

But how to track all these information? Though I’m not a credit card holder and have no liabilities, I still wanted to know the way how these information are tracked.

And I found something called CIBIL-> Credit Information Bureau of India Limited.

It’s a central repository for all the information related to ur credit based financial transactions.

Many of the banks like SBI,HDFC,ICICI are CIBIL’S client.

What kind of information do CIBIL maintain?

a) You buy a credit card.

b) You make transactions with credit card.

c) You apply for loans.

if you don’t pay your loan on time , don’t pay your credit card bills on time ,that information is also tracked and interesting part is your punctuality in clearing the loan will also be recorded.

These reports are very useful in decision making for financial institution like banks, AMCs and many others as well as for an individual to monitor his personal finances.

I also have learnt that these days’ people with bad CIBIL report are often rejected in interviews conducted by some popular organizations.

All they have to say is if your CIBIL report is bad then it means you are very ignorant about your financial life and hence will certainly not add much value to the organization.

If a Relationship Manager say’s to the customer that “hey my own financial life is a mess. But don’t worry i will help you gain more profit in your investments” do you think customer will ever listen to him and co-ordinate will the organization??

I have also seen people who got their loan application rejected due to bad CIBIL reports as they feel that this individual will not pay clear amount on time.


I’m collecting more information about this. Incase people already know about this can give me more information.