The Real Cost Of The Digital Transactions – ZMR Blog
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The Real Cost Of The Digital Transactions

The Real Cost Of The Digital Transactions

Post November 8, 2016, most of us were abruptly forced to explore digital means of making transactions even for the most fundamental of purchases such as purchasing every day rations. While a number of us have shifted to electronic transactions, not many are known with the prices that are linked with it.

Let us have a brief as to how much price is associated with the different modes of digital transactions

Mobile wallets

Mobile wallets received attention during demonetization. As the name recommends, mobile wallets permit you to transact through an app utilizing your handset. On the other hand, one can make payments or transfer money, only if the receiver and sender are employing the similar mobile wallet.

It is a recognized fact that there are no costs while adding cash or making payments via wallets. But were you aware that there are particular costs when money is transacted from your mobile wallet to your bank account.

For example, Paytm takes a flat 3% for transferring cash to your bank account from your wallet. In the same way, Mobikwik takes 4% of the transfer money.

Digital Transactions

Payments bank

Dissimilar the normal bank, a payments bank provides restricted services to its users that are as per guiding principles of the RBI (Reserve Bank of India). Paytm Payments Bank and Airtel Payments Bank are some instances.

Payments banks provide services such as taking deposits of maximum Rs 1 Lakh per separate users and issuance of debit/ATM cards (no credit cards). Payments banks are not permitted to provide loans. Dissimilar to mobile wallets, they do provide interest on deposits. Paytm Payments Bank is providing interest of 4% each year, whereas Airtel Payments Bank provides 7.25% each year.

Services provided by payments bank are obviously associated with a price. According to the website of Airtel Payments Bank, there are no cash deposit or account opening charges but there is a charge on withdrawal of cash of 0.65% of the money.

In the same way, transaction of money inside Airtel Payments Bank is free but for transaction to other banks arrives with a price of 0.5% of the sum being transacted.

Unified Payments Interface (UPI)

There is no fee for making transactions employing the UPI service. On the other hand, if a transaction is carried out from UPI to say an account of bank employing NEFT, IMPS, or RTGS, then a bank might charge you for it.

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