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Petrol Pump Owners threatened to accept debit/credit card payments on Sunday after banks imposed 1 percent transaction fee. Immediately, Centre intervened to ensure that banks postpone the implementation of transaction fee by few days. Following which, Banks have announced that the decision has been postponed.
Finally, All India Petroleum Dealers Association issued a statement delaying the agitation till January 13th, 2017 after the intervention of Petroleum Ministry.
The issue began as HDFC and Axis Banks had sought 1 percent Merchant Discount Rate (MDR) on each transaction. All India Petroleum Dealers Association President Ajay Bansal told they can't accept the proposal as their margins aren't big enough. He further adds, The existing mechanism doesn't give any scope for Merchant Discount Rate (MDR) on transactions. Dealers will incur loses if this rule is implemented.