BENGALURU/ NEW DELHI: Through Sunday, the media was buzzing with reports that petrol pumps would refuse to accept card payments for fuel from Monday. Anxious consumers, already grappling with a cash shortage, fretted that this would directly clash with the government’s efforts to wean people off cash and encourage digital payments.
Finally, there was some relief on Sunday night after banks agreed to defer their decision to charge 1% transaction fee on card payments at petrol pumps from Monday.
The move had prompted dealers to say they would stop accepting plastic money unless a mechanism to compensate them was also put in place. Petroleum dealers have now said they will accept cards till January 13.
The banks relented after prodding from oil minister Dharmendra Pradhan during discussions among bankers, dealers and representatives of state-run fuel retailers. "Banks have agreed to defer the fee for 4-5 days," a senior oil ministry official said, indicating that a mechanism to compensate dealers would be worked out.
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