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

10 rs coin banned by RBI ? Reality explained

today , after lunch i went to have buttermilk . when i took out 10rs coin to pay to shop keeper, he denied .

shopkeeper: “sir , we dont accept 10 rs coin. please give us note .“,

me:”huh?? why? whats the problem with this coin?

s:”Sir, its banned by government , dont you know ?

m: “boss, who told you this ?

s:”sir you can see Facebook or whatsapp  messages, i can show you

(shows some posts and images which was circulated in his group..)

me:”did PM announce this ? did RBI announce this ? did finance minister announce this ?

another colleague of shopkeeper:” sir please give note sir , we are receiving counterfeit coins “

me:”this is genuine man , also i donot have change, i only have 500 rs note .”

s:”ok give me”

i gave him 500 rs note and he handed over 490 rs balance to me .

i wonder how ill-informed are people who believe in some fake posts on facebook and whatsapp ..

below is the original circular by RBI(Reserve Bank of India)


PS:please click on image or zoom to see the above circular more clearly

my sincere advice is to people in india , not to believe in Facebook and whatsapp forward messages and post blindly .. refer different genuine sources and then decide.

if my understanding wrong, kindly throw some light on this so that i can know the reality better .

Question of the day :

Have you been in similar situation where anyone has denied to accept 10rs note ?

comment back & share your experience.

Bank Lockers . Are you an informed banking customer?

sharing you my experience on how bank officials mislead us.

this Monday i had been to a bank to ask for a locker facility . it was Karnatak Bank , Bangalore .
I was introduced to the lady who was in-charge of maintaining lockers. she showed me lockers of different size.
i was OK with that and confirmed the locker size i need . i asked for the annual fees for that and she said 2850 INR per year

i was still OK with that since it was essential to avail that facility for me now for some obvious reasons

we talked about paperwork and i was about to leave when she said . there is a condition..

below is the conversation

she : Sir , to avail this you need to do one more thing

me : and..what would that be ?

she : Sir you need to keep 100,000 INR as fixed deposit

me : huh?? i don’t feel the necessity i have enough of funds under debt asset class. and why do you tell me do that ?

she: it’s a security deposit sir .

me : Thank you . I cannot afford it and I don’t feel the necessity too. I will make a move .Good Day

She: sir , please wait . if you can’t afford it , we have another option

Me:  Err!! what is it now madam

She : you should buy an insurance policy .. we have insurance adviser here you can talk to him

me : sorry , I’m adequately insured

she : sorry sir, we cannot give you locker facility then ..

me : so in that case I would say there is no rule like that . only rule i know is  you can only take 3 times the annual fees as a security deposit .
meaning when u say its 2850 INR u can take 2850*3=8550 . This is RBI rules

i opened up the site in my mobile and showed her the rules.

“Banks may face situations where the locker-hirer neither operates the locker nor pays rent. To ensure prompt payment of locker rent, banks may at the time of allotment, obtain a Fixed Deposit which would cover 3 years rent and the charges for breaking open the locker in case of an eventuality. However, banks should not insist on such Fixed Deposit from the existing locker-hirers. “


now she said , “sir I think lockers are full , may be next month i will check again and revert back to you .

now question is are you informed about this ? are you financially literate enough to tackle situations like this
or were you a victim of misselling products like this by any bank officials.
Please share your story .