0.75% cash back in 3 days, if you use plastic money at petrol pumps

Mumbai:  There is good news at last for those using cards to pay their fuel bills at the petrol pumps. In a bid to calm down the angry customers, the government has direct the banks to inform consumers that the cash back will soon be credited in their aaccount.

The banks will notify the consumers via SMS that 0.75% cash back would be credited to their accounts soon after they make payments using cashless mode. The customers will get the cash back within three working days of making the payment.

The government was forced to issue directive to banks as the customers had almost stopped adopting cashless means for payments at petrol pumps following uncertainty over cash back. Government had announced a 0.75% cash back for consumers in a bid to promote cashless mode of payments.

The customer interest in digital payments had also waned after petrol pumps refused to accept debit and credit cards of three large private banks after they decided to levy charges on card transactions. This charge was waived during the 50-day period following the note ban to promote cashless transactions.

As things stand now, petroleum companies will bear the MDR cost(which is 0.25% on Rs 1,000 and 0.5% on transactions above Rs 1,000) and the government will reimburse the cashback of 0.75% to banks.

 However, the MDR will be charged from the customer initially. “As things will work out now, the entire amount will be debited from the customer’s account, subsequently, cashback of 0.75% and merchant discount rate that is charged in case debit card will be credited back to the customer’s account,” a bank official was quoted as saying in a media report. 

News24Bureau