Payment companies starved of govt subsidy on digital payments

In December 2017, the government issued a gazette notification agreeing to waive off fee from digital transactions up to Rs 2,000

A government subvention scheme introduced to ease the burden of accepting digital payments on merchants has ended up putting pressure on payment firms due to delay in reimbursements. 

While payment companies are threatening banks that they will pull the plug on their services, banks are claiming that they haven’t received a penny from the government yet, emails accessed by Business Standard show. 

In December 2017, the government issued a gazette notification agreeing to waive off all transaction fee from digital transactions up to Rs 2,000 and promised to reimburse banks for the same. The banks, in turn, are supposed to pay card