Is it legal for NPCL to charge a convenience fee for paying bills via NEFT?

Hello Fellow Members, I have been paying my bills online but noticed that Noida Power Company Ltd charges a convenience fee when I pay my bill via NEFT. Is this legal? What kind of "convenience" is NPCL giving a consumer? In fact it is the other way round... I use my telephone network to pay a bill that their staff doesn't have to process, but it goes directly into their account. more  

View all 35 comments Below 35 comments
On IRCTC website, when we book ticket and pay by credit card the bank debits service charge. There are two debits in credit card account: 1. Total ticket amount; 2. Bank service charge+GST18%. I have two observations:
1. It appears that IRCTC (being a Govt. enterprise) does not pay merchant commission to Credit card bank;
2. The cost of reservation booking across the counter is much more costlier to Railways compare to online reservation. Hence, Railways saves cost if reservation is done through IRCTC online system. Then why Railways / IRCTC should not pay merchant commission to credit card agency.....

The current system does not favour the use of online system and payment thru credit card. Railways and all other departments must change their practices and change their policies for paying merchant charges..... more  
Convenience Fee: Legality is debatable, but sneaking a peek into past, I figured that system upgrades have taken place and needs to be updated frequently to meet the changing IT eco-system. Most companies have outsourced these systems at a fee thereby creating a parallel eco-system hence convenience fee. It pays for employees and other costs apart from Profits. I hope it clarifies. By the way, no convenience fee is payable when you make payment at the designated counter as it is already accounted for... more  
There seems to be a confusion in understanding the issue - NEFT charges and Convenience charges. I suppose both are different. Now that NEFT charges have been made zero by the RBI, we still need to project and fight against the charging of 'convenience charge' for on-line payments. Convenience charge should be abolished by suitable legislation (and made punishable if charged) to further the advantage of digital payments. In some cases it is funny to note that we get cash back for making digital payment (incentive) while for the same transaction we end up paying a much higher convenience fee, wiping out the advantage of cash back and finally ending up with a loss (dis-incentive) for having made the digital transaction. more  
It has come a news item recently, I am not sure of date of issuing notification, as it normally takes time and takes extra time further to execute down to the field offices. I have specifically made it clear in my observations. I shared it from my experience. You may also visit RBI consumer corner on web site or new notifications issued. thanks. more  
Post a Comment

Related Posts

    • Improving integrity of Online Reviews: Inputs on Solutions

      Below are some if the key issues outlined by you all with regards to Online Product Reviews on eCommerce sites. Kindly review them and share solutions that will help enable consumer access to unbia...

      By Dept. of Consumer Affairs (Government of India)
    • Inflated MRP: Inputs on Issues

      Below are some of the key issues outlined by some of the members in regards to inflated MRPs. This pertains to certain category of products where the average sales prices is much lower than the MRP...

      By Dept. of Consumer Affairs (Government of India)
    • Misleading Advertisements by eCommerce sites: Inputs on Issues

      Below are some of the key issues raised by you in regards to misleading advertisements by ecommerce sites. Kindly review the same and share any additional inputs you may have. We look forward to yo...

      By Dept. of Consumer Affairs (Government of India)
    • Improving functioning of eCommerce Cashback Programs

      Below are some of the key solutions proposed by you to issues regarding eCommerce cashback programs. Kindly review the same and if you have any additional solutions, please share. We look...

      By Dept. of Consumer Affairs (Government of India)
    • Online or ePharmacies - Inputs on Solutions

      Below are some of the key issues being reported on online or e-pharmacies and apps. With this post, we would like to seek your specific inputs on solutions that will help address these issues .

      By Dept. of Consumer Affairs (Government of India)
    • Cheated by LG

      I purchased LG water purifier in the month of November last year. Since then I noticed that my family members including me have some health issues so after around 6 months I called LG professionals...

      By Pankaj Kumar
    • IFB - Poor After Sales Service

      I have an IFB washing machine. I had paid for and taken extended warranty. Since last over one week it is not working. I made a complaint. For two days, no one attended the complaint. On ...

      By Praveen Kapur
    • Apple phones are best leased for 2 years

      I must say cost of owning an apple phone is 3000 rupees a month or 100 rupees a day. The product is a fine product when its new and after 2 years they generally become pieces of junk.

      By Amit Mishra
    • Solutions to improve workings of Online Travel Sites

      Below are some of the key issues outlined by you in regards to travel web sites in India. Kindly review them and share specific solutions that must be implemented to fix these issues. We look forw...

      By Dept. of Consumer Affairs (Government of India)
    • Issues with DTH Service providers: Inputs Sought

      We have seen a large number of posts and comments on issues faced by people with DTH service providers. With this post, we would like to seek your inputs on the various issues you have ...

      By Dept. of Consumer Affairs (Government of India)
    • eCommerce Guidelines: Inputs Sought

      Thousands of posts and comments have been received on ecommerce in our circles in the past few months. We are pleased to share with you that basis the inputs given to us in several posts and discu...

      By Dept. Of Consumer Affairs (Government of India)
Share To
Enter your email & mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

Please select a Circle that you want people to invite to.
Invite to
(Maximum 500 email ids allowed.)