Reserve Bank Of India [RBI] — VAT Percentage on every Purchase

Address:	Mumbai City, Maharashtra, 400001
Website:	www.rbi.org.in

Hello,

Honourable Prime Minister Mr. Narendra Modi Ji initiative to transform India to a Digital age is much appreciated. But, without people and Bank support this cannot be achievable. Recently, i have purchased plywood and paint materials. when shop owner asked for money, i told him, i am going to use my debit card to make my payment. i was then told by shop owner, i will charge 2% of VAT from you if you use your debit card for payment. i was confused for a moment and asked why are you charging 2% from my total purchase when government of India authorised and encouraging people to use digital payment. shopkeeper said, if i don't charge 2% from you, BANK will charge 2% from me for every transaction i make using Swipe machine. literally, this is not what we expect from bank/shops to react. there is no point in making digital payment if this is the case. why does BANK's charge shops 2% for every transaction? as a result, shops are charging consumers. we see there is loophole in the law which cannot guarantee the consumers affordability/wealth to transform to a new digital age. in this case, why do you encourage people to use digital payment when there is a loss to the consumers. redefine the Law/Norms associated with BANK's and bring to enforcement. what we can expect to have in place to deal with this? how are we going to mitigate this and save consumers efforts and money?