Visa critical of India's move toward no-fee debit card transactions

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Visa critical of India's move toward no-fee debit card transactions
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Global card payments group Visa is critical of the Indian government's deci...

MUMBAI - Global card payments group Visa is critical of the Indian government’s decision to boost adoption of electronic payments by requiring banks and card payment networks to offer no-fee debit card transactions, a senior Visa executive said.

Last month, India’s Finance Minister Nirmala Sitharaman said that businesses with annual turnover of 500 million rupees will not have to pay a merchant discount rate on debit card and other digital modes of transactions, excluding credit cards. “I find the logic a bit fallacious because the cost is not free ... I am a firm believer in low economics, but no economics student can believe in no economics,” T.R. Ramachandran, Visa’s India and South Asia head, said on Monday, speaking on a panel at an industry conference.

India’s Finance Ministry was not immediately reachable for comment on the matter outside of business hours.

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