Customers can pay at petrol pumps via cards post Jan 13 too, says Pradhan

January 9, 2017

New Delhi, Jan 9: Credit and debit cards will continue to be accepted at petrol pumps even after January 13 without customers having to pay transaction charges, the government said today.

pumps
Banks and oil companies are in discussions as to who should bear these charges, it said a day after averting a crisis that would have hit millions of people as oil pump owners threatened to stop taking card payments.

"Merchant Discount Rate (MDR) charges will be levied as per RBI guidelines but who will take the hit? Banks, oil marketing companies are discussing," Petroleum Minister Dharmendra Pradhan told reporters after meeting Finance Minister Arun Jaitley on the issue.

"We had assured yesterday also that since retail outlets, petrol pump owners work as commission agents, we will not pass on the cost to them," he said.

Petrol pump operators had yesterday threatened to stop accepting card payments after banks said the transaction charges of up to 1 per cent will have to be borne by them. The crisis was averted after banks agreed not to insist on transaction charges for five more days, leading to pumps owners deferring their plans till January 13.

Pradhan said the government stands by its decision that customers using non-cash digital modes of payments will not have to pay any transaction charge. Also, the 0.75 per cent discount on fuel rate for using digital payments will continue.

"Banks and oil marketing companies (OMCs) are discussing the issue. In the coming days a mechanism will be worked out under which customers or petrol pump owners will not bear the cost," he said.

Pradhan said the government had in February last year issued a circular saying customers will not have to bear the MDR charges on digital transactions so as to help the country move towards digital transaction and less cash economy.

"Government will ensure implementation of that decision," he said. "In the coming days whatever digital transactions happens especially in petrol pumps, the burden will not be passed on to customers."

When a card payment is made using a POS machine, service charges are levied. All stakeholders are discussing who will bear these, he said.

Pradhan said the Reserve Bank of India has come out with a circular on the amount of MDR to be charged for transactions below Rs 1,000, those between Rs 1,000 and Rs 2,000 and those above Rs 2,000.

Asked if petrol pumps will continue to accept card payments after January 13, he said, "They will accept cards. I want to assure the people of the country who want to do digital transactions in petrol pumps, they will continue to do so."

With OMCs already facing Rs 5,000 crore hit from having to bear 0.75 per cent discount on fuel sold using digital modes, Pradhan said the numbers are "fictional".

"It (Levying MDR charges on card transactions) is a business model between banks and OMCs. They will decide who will take how much cost," he said. "Government will not bear the cost."

Card payments involve 2/3 players -- payment gateways, POS machine provider and banks/merchandise outlet. "All these have their own share in the MDR charges. After negotiations, it will be decided to what extent the MDR charges can be brought down that we are discussing," he said.

Pradhan said people can use cards for fuel purchases even after January 13. "0.75 per cent cash back incentive that we have given to customers will also continue."

"It will be resolved before January 13. Bargaining and

negotiations are going on. An amicable solution will be worked out," he said.

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News Network
March 15,2024

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Bengaluru, Mar 15: Work from home to using toilets in malls, residents of India's 'Silicon Valley' Bengaluru are exploring all options to combat the unprecedented water crisis. People across various neighbourhoods have been forced to order food from restaurants and take bath on alternate days due to the water scarcity.

Even those in high-rise apartments equipped with water harvesting systems now find themselves reliant on water tankers for basic needs, leading to stringent usage restrictions.

Eateries are mulling over use of disposable cups, glasses and plates to avoid excess use of water.

Educational institutions are also feeling the pinch. Recently, a coaching centre in the city asked its students to attend classes online due to an 'emergency' for a week. Similarly, a school on Bannerghatta Road was also closed, asking students to attend classes online just like they did during the Covid pandemic.

Residents have come with up new methods to try and conserve water. With temperature rising, it is difficult to avoid a daily shower but they are left with no option but to take bath on alternative days, said Sujatha, a resident of KR Puram.

"What to do? Clean vessels, cook food, wash clothes....so, we have started using paper plates, that way we have cut down on our water usage. And we order food twice a week. We are using the washing machine only once in a week now," she said.

Some others have resorted to visiting a mall to take a shower or use the toilet facilities.

Lakshmi V, an IT professional living in Singasandra, has been requesting her firm to allow WFH option so that she and her family can temporarily shift to her native place in Tiruchirapalli in Tamil Nadu until the situation becomes better.

"If the situation persists, we are thinking of seeking a work from home option. We are planning to move to our native place in Tamil Nadu temporarily till rain arrives here," she said.

Bengaluru primarily gets its water supply from two sources - Cauvery river and groundwater. For most non-drinking uses, recycled water processed by sewage treatment plants is used. With no rain for a while now, the primary sources have been stretched to their limits. Bengaluru needs 2,600-2,800 million litres of water daily, and the current supply is half of what's required. The result is a daily struggle for the city's residents.

The brunt is also being borne by people living in the outskirts of Bengaluru, especially in 110 villages that were merged with the city in 2007.

The crisis has also turned into a political battle between the state's ruling Congress government and the opposition BJP with Lok Sabha just weeks away. While the BJP has held several protests blaming the government, the Congress has accused the BJP-ruled federal government of not providing financial assistance to drought-hit Karnataka.

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News Network
March 14,2024

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Udupi: In a freak mishap, a 65-year-old man lost his life after being hit by his own bus which was being repaired at a garage at Athrady in Udupi district on Wednesday, March 13.

The deceased has been identified as Dayanand Shetty, the owner of a private bus.

It is learnt that the bus had been kept for repairs at the garage and Dayanand had gone there to inspect the repair works.

At this time, the mechanic started the engine and the bus moved ahead. Dayanand, who was standing in front of the bus, came under its wheels.

He was immediately rushed to a hospital where he died without responding to the treatment. A case is registered at jurisdictional Manipal police station.

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News Network
March 16,2024

Mangaluru: In the wake of complaints regarding middlemen menace, sleuths of Lokayukta on Friday, March 15, conducted a raid at the Mangaluru Urban Development Authority. 

The Lokayukta team found unaccounted money and several files, which were not disposed of for a long period.

Lokayukta SP CA Simon said that the Lokayukta has received complaints that middlemen have been interfering in the MUDA office, and files pertaining to the public are not being cleared on time.

A raid that commenced in the evening on March 13, lasted for 18 hours. During the raid, Lokayukta officials found cash in a bag in MUDA office, and also with officials and others. MUDA officials could not inform the source of money found in their office, the SP said.

Further, he said that many people gathered at the MUDA office during the Lokayukta raid, and have raised complaints about the harassment at the urban development authority. “We have gathered evidence for MUDA officials carrying out file disposal processes through brokers on phone calls. The investigation on the MUDA network will be continued,” he said.

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