CURRENT AFFAIRS

Detailed explanation-1: -Allow increase in interchange fee per transaction from ₹15 to ₹17 for financial transactions and from ₹5 to ₹6 for non-financial transactions in all centres. This shall be effective from August 1, 2021.

Detailed explanation-2: -Definition: Interchange fees are transaction fees that the merchant’s bank account must pay whenever a customer uses a credit/debit card to make a purchase from their store. The fees are paid to the card-issuing bank to cover handling costs, fraud and bad debt costs and the risk involved in approving the payment.

Detailed explanation-3: -Examples of Interchange Fee Rates Visa: 1.4% to 2.5% for credit cards and . 05% for debit cards. MasterCard: 1.5% to 2.6% for credit cards and . 05% for debit cards.

Detailed explanation-4: -The RBI allowed banks to levy an interchange fee of ₹ 17 per financial transaction and ₹ 6 for each non-financial transaction at all centres starting 1 August 2022. The banks collect ATM service charges to meet the increasing ATM installation and maintenance costs.

Detailed explanation-5: -SBI latest charges for IMPS transaction According to the SBI website, a new IMPS transaction slab of Rs 2 lakh to Rs 5 lakh would be available from February 1, 2022. According to the website, the charges for transmitting money using IMPS for sums between Rs 2 lakh and Rs 5 lakh will be Rs 20 plus GST.