Narendra Modi is in Global News by removing black from Indian money. The biggest question that they need to address is what about the service fee on digital payments ? Read more Narendra Modi news.
1.2 Billion population is now forced to adopt digital payments over cash. There are multiple organizations that collect service fee when we digital payments system. MakeMyTrip takes Rs 500 for every transaction done through card. This is a private organization that works on commission bases, so their margin is low and the service fee is justified. What about a government body like IRCTC? They collect 1% and more over every traction as a service fee. Around 18 Crores (stat from factly.in) tickets are sold per year. Revenue made from this is Rs 20514 Crores (stat from factly.in). Average ticket value will be Rs 1,500/-. Since government is removing cash, let’s assume 85% of the tickets are booked online or payments are made through card, which makes service fee of Rs 175 Crores.
Similarly electric bill paid on the website also has a service fee. Government should remove the service fee and allow users to make transactions without any service fee. They are giving incremental business to payment providers like Visa, Master Card, Amex, and RuPay. Infact the payment providers should give some money back to the government for making the country adapting to these digital payment technologies. Read more Business News.
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