Narendra Modi’s effort to make India digital is something that we all have heard in the past few months. However, one needs to understand the fact that such a change needs time along with solving various other problems that will rise up in the execution of a plan. One of his recent step towards Digital India was the launch of BHIM app. It is a digital wallet for paying money to merchants and many other things.
However, today, Narendra Modi got a big shock when the Petrol Pumps refused to accept the payment via cards, e-wallets, and net-banking. In a way, they are done with the plastic money. From now on, i.e from Monday, they will only be accepting cash. Since the liquidity in the market has still not reached its point, it will be difficult for the general public to cope up with such problems.
But what made these Petrol Pump owners stop using these digital payment modes. It is because of the 1% transaction fee on cards that has been applied by the BANKS which by new rules has to be paid by the Petrol Pump owners. The customers will not be directly affected by this rule. Only those customers who were paying their payments via cards are now in big trouble.
The banks sent a notice of 1% surcharge on card payments and this took the Oil Ministry by surprise. HDFC and ICICI bank roughly accounts for over 60% of Banks in India, and hence, this move will definitely cause a lot of problems.
However, considering the damage that it will cause to people, this decision has been put on hold so as to discuss it in detail. The discussion will be done among the petrol pump owners, banks and stakeholders-state run fuel retailers. Ajay Bansal, the president of All India Petroleum Dealers Association stated that they are firm on this decision of withdrawing card machines from the today midnight.
Fun fact, earlier Narendra Modi government had gifted a cashback of 0.75 percent on every digital transaction, however, after this mishap, it hardly seems that anyone would want to opt for this option.
What are your views regarding this decision? Please share it down in the comment section below.