The central bank on Wednesday released a discussion paper on all the charges levied on various payment systems such as RTGS, OilUPI, raid, credit and debit cards among others. The regulator has asked all payment system stakeholders to provide feedback on whether it should levy the fee. is i Or it should be market determined, along with seeking comments on the Regulations on Interchange Fees on Debit Cards and Credit Cards. This paper is open for comments of stakeholders till 3 October 2022.

“Discussions are presented on charges in various payment systems, their rationale, alternative views, etc.,” the regulator said. “After each discussion certain questions have also been raised to elicit stakeholder and public feedback. The discussions and inputs received will be used to formulate policy interventions going forward.

In December last year, the regulator had said it would issue a discussion paper on various charges levied by banks and institutions for all types of digital transactions through credit cards, debit cards, wallets and Unified Payment Interface (UPI).

The regulator has asked all payment system stakeholders to submit feedback on whether reserve Bank of India The policy of not charging members for RTGS and NEFT transactions should be reviewed. At present RBI does not charge member banks for using RTGS and NEFT infrastructure. However, in return, banks levy certain charges on customers for operational usage.

RBI has also asked payment system participants to share their views on whether it should regulate charges for IMPS transactions or put a cap on these charges.

RBI seeks comments on charges levied on usage of debit and credit cards whether debit card transactions should be charged as normal money transfer transactions or MDR for debit cards should be same for merchants, irrespective of turnover Are.

RBI has also asked whether it should regulate the interchange for debit card and credit card transactions.

“The administered shortfall of MDR could damage the ecosystem and affect the profitability of the entities providing these services,” the central bank said in the discussion paper. “It will also impact investment in infrastructure and innovation in the payment acceptance sector. Therefore, it is submitted that instead of mandating further reduction in MDR, it may be necessary to review the scheme followed by payment system operators with regard to distribution of fees among payment system participants.

The central bank has also asked whether it should regulate MDR for prepaid instruments (PPI) transactions or the fee structure for merchant payments made using PPIs should be similar to that of debit cards.