BANKING AFFAIRS

Detailed explanation-1: -The merchant acquiring bank charges the merchant a per-transaction fee. The network processor also charges the merchant a per-transaction fee. These fees can range from 0.5% to 5.0% of the transaction amount plus $0.20 to $0.30 per transaction.

Detailed explanation-2: -As per Section 2(14) of the CGST Act, “authorized bank” shall mean a bank or a branch of a bank authorized by the Government to collect the tax or any other amount payable under the Act. At present 24 Banks (after merger of five Associate Banks with SBI) are authorized for collection of Indirect taxes.

Detailed explanation-3: -RBI has decided to allow all Regional Rural Banks (RRBs) to act as merchant acquiring bank using Aadhar Pay, BHIM app and POS terminals and shall be permitted to deploy their own devices, provided it takes prior permission from RBI and have net worth of Rs 100.00 crore or more as on March.

Detailed explanation-4: -The Credit Authorization Scheme (CAS) was launched in 1965 and was withdrawn in 1989. Under the scheme, all selected commercial banks were advised to obtain the RBI’s prior authorization before sanctioning any credit limit of Rs.