There has been complaints by people that service charge is being taken on payments at petrol pumps .etc. On 8-12-2016 a circular came out with instructions that all transactions up to Rs.2000 will not have any service charges. Demonetization of currency notes has promoted usage of online wallets, debit, credit card transactions in India. Number of ATM withdrawals using debit cards in India also increased. So this made all customers have doubt regarding, What are Online transactions limit India is having after demonetization. This was because withdrawal limits have been specified on bank withdrawals in form of cash.
ATM withdrawals in form of cash was having withdrawal limit of Rs.2500 as of now. Earlier it was Rs.2000. There was discussions to increase ATM withdrawal limit to Rs.4000, but was not allowed as cash circulation became difficult. Even Indian Prime Minister Narendra Modi asked citizens to depend more on online transactions. Promotion of cashless transactions using wallets was recommended in India. This made everyone inquire whether there is any Debit Credit card payments limit applicable on online transactions.
For online transactions earlier limit is still applicable. At POS (Point of Sale) transactions depending on different debit, credit cards limit is different. For most cards value is varying from Rs.50,000 to Rs.1,00,000 per day. So limit that is on your debit card will still continue. As per direction of Reserve Bank of India there will be no extra charges or transaction fees on online transactions except VAT (Value Added Tax). With demonetization most customers started using their debit card for making online transactions. With increased use of card payments in shopping at malls, small shops most places started installing card swiping machines. Debit cards were used by people in making easier transactions when cash withdrawals through ATM’s were limited.
For online card payments or transactions there will be no fees up to Rs.2000.
Withdrawal limit imposed by RBI on cash withdrawing through bank branches, ATM’s still continue. This type of situation increased use of onlne wallets too. Periods from November 2016 is boom period of Online wallet companies like Paytm, Jio money, SBI Buddy, Airtel Money .etc.
Cash back offers are another attraction of online wallets that are made use by most customers during this crisis in India. In future there is a chance that currencies will not be used and all transactions will be online.
This will be done through a plastic card or online account with phone number and a smart phone. Unified Payment Interface (UPI) is another upcoming technology in India to make fast cashless transactions.
On Sunday, 20th November 2016 (20-11-16) all Banks branches in India will remain closed. From 9-11-16 all banks in India were continuously working for 11 days till 19-11-16. Banks worked for extra hours to handle rush and work over load due to cash demonetization in India. To reduce pressure of staff due to long working hours, it was decided to give holiday to all Sunday working branches too.
There are Zero fees for all online transactions from 9 November 2016 to 30 December 2016. All ATM charges on any number of withdrawals using debit cards are also waived off till 30-12-2016 as per directions of RBI.
NEFT, IMPS, RTGS transactions for receipts, payments of money is now used for online transfer of money in India. With giving more importance to online payments, Indian prime Minister Narendra Modi led Central Government is aiming to eradicate black money.
All transactions made online will be taxable in future and all transactions will have a record. Even if you purchase gold, vehicles or anything it can be made using online transfers or cheques. Through this implementation no one can escape IT Department.
Therefore doing online transactions have it’s advantages and disadvantages for common man. In a situation where currency is withdrawn there is no choice for people to make payments other than online payments.
Unified Payments Interface (UPI) has been already launched in 2016 and by year 2017 it will become popular in India. NEFT (National Electronic Funds Transfer) has been used for a long time and is now widely used after demonetization of Indian currencies.
For NEFT transfers any minimum amount can transferred ad maximum amount that can be transferred is upto Rs. 10,00,000 (10 lakhs) per day. There is fees applicable on NEFT transactions, fun transfers .etc. like before.
RTGS also known as Real Time Gross Settlement is another mode of online transfer of cash between accounts and has transaction fees in it.
IMPS or Immediate payment service (IMPS) is another mode of online payment of money that has service taxes applicable in it.
Online transactions through debit, credit cards are most used by people in India for shopping.