The All India Petroleum Dealers Association (AIPDA) had sent a written communication to the Ministry of Finance and the Ministry of Petroleum saying that since public and privte sector banks like HDFC had decided that a 1% dealer charge on all credit card and debit card transactions would be applicable for all Petrol Pump owners from the 9th of January 2017, they would no longer be accepting card payments from customers who purchase petrol, diesel or CNG.
A meeting was convened and chared by Petroleum Minister Dharmendra Pradhan on Sunday the 8th of January with senior bank executives, dealers and representatives of Government owned petroleum retailers, where bank officials agreed to postpone the implementation of this scheme by 4-5 days. The new rate was not scrapped by the banks, but the 4-5 days will buy the Government some time to come to an amicable working solution.
The banks had taken this decision due to an RBI circular which was sent out on the 16th of December that asked banks to charge this rate from the pump owners. Since the demonetization of Rs 500 and Rs 1000 notes, many people had started using cards to make payments and hence any roadblock in this would be a major concern for the Govenrment in making India a cashless digital economy.
India has about 56,200 petrol pumps, including private players like Reliance and Essar.