IRCTC blocks debit card payment gateway for several banks

As of now, cardholders of only six banks including Indian Overseas Bank, Canara Bank, United Bank of India, Indian Bank, Central Bank of India, HDFC Bank and Axis Bank are allowed to make card payments.

New Delhi: Indian Railway Catering and Tourism Corporation (IRCTC) has blocked many banks from using its payment gateway for debit card transactions over the issue of convenience fees, media reports said on Friday.

As of now, cardholders of banks including Indian Overseas Bank, Canara Bank, United Bank of India, Indian Bank, Central Bank of India, HDFC Bank and Axis Bank are allowed to make card payments.

IRCTC had waived off the Rs 20 convenience fee it charged from customers after demonetisation.

But, IRCTC reportedly expected banks to share half the convenience fee that they charged to customers whenever they purchased tickets online.

However, the banks reportedly did not share the amount with the Railway ticketing arm.

Media reports further said that the Indian Banks’ Association (IBA) is discussing the issue with IRCTC and the Indian Railways with a view to resolving the matter.

For railway ticketing and other passenger service transactions, the RBI guidelines which were issued on February 16, proposed a flat fee of Rs 5 for transaction value up to Rs 1,000 and Rs 10 for transaction value Rs 1,001 to Rs 2,000.

It also suggested MDR not exceeding 0.50 percent for transaction value above Rs 2,001 with cap of Rs 250 per transaction.