Digital Payment Options & Their Charges To Keep In Mind

Image Source: Google
Image Source: Google


With India transforming into a digitally empowered society, it has made each one us embrace digital economy to a level where we are capable enough to perform transactions via different digital avenues the government has introduced.


The Reserve Bank of India has identified 10 major electronic payments options – National Electronic Funds Transfer (NEFT), Immediate Payment Service (IMPS), Real Time Gross Settlement (RTGS), Cheque Truncation System (CTS), National Automated Clearing House (NACH), Unified Payments Interface (UPI), Unstructured Supplementary Service Data (USSD), Debit and Credit cards, Prepaid Payment Instruments (PPI) and Mobile Banking.


Even though digital payment options have made it more convenient for us by enabling us to move around without carrying cash or make payments from the confines of your home, there are still charges that are levied over some of the digital payment options.

We take a look 3 such payment options and their possible charges.


Credit/Debit Cards

When we swipe a debit or credit card at a Point of Sales Terminal (PoS), it might seem that we have paid exactly for what we are purchasing. But that is not entirely correct.

There are charges involved such as Joining fees which is a one-time cost born by the card holder which can be in the upwards of Rs. 250. Annual Fees can range between Rs.200 and Rs.5000.

Annual and Joining Fees are usually lower for debit cards but higher for credit cards.

Debit Cards as we all know double up as ATM (Automatic Teller Machine) Cards. Crossing the minimum free transactions of 3 in a month can get you charged a fee of Rs.15-20 per transaction.



USSD enabled NUUP (National Unified USSD Platform) is a mobile banking service that brings together all the Banks and Telecom Service Providers to allow a customer basic banking transactions such as send or receive money, checking account balance or getting a mini statement. A NUUP customer can access banking services by simply pressing *99# from his/her mobile phone. Both USSD and UPI currently do not charge for their respective transactions but there is a possibility these transactions will be chargeable in the future after a certain transaction limit.


And Lastly…

Fund Transfer

For NEFT transactions the cost incurred is between Rs.2.5 to Rs.25. For RTGS the charges are Rs.30 to Rs.55. IMPS transactions charge between Rs.5 to Rs.15 for each transaction.


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