Digital transaction theft: a Rs 11.30 service fee for every Rs 1 transaction

The implementation of Value Added Tax (VAT) on digital transactions has resulted in a chaotic situation for small firms.

After interbank and payment providers began charging 13 percent VAT on financial transactions, the cost of digital transactions increased.

A few weeks ago, Prime Minister KP Sharma Oli stated that they were talking about lowering or eliminating the extra fees for mobile banking transfers in response to customer complaints. There isn't any discussion material available.

The government is, on the one hand, promoting online banking. The costs associated with internet financial transactions, however, are substantial.

The service fee for online banking transactions has already been established by Nepal Rastra Bank; it has not been changed. In November of last year, the Central Bank published the Integrated Payment System Directive-2080, which included charge schedules. The service providers are permitted by the National Bank to impose a service fee of any amount (Rs. 1 and above), with a maximum of Rs. In the current financial year, the government changed the economic bill and added 13 percent VAT. As a result, the customer now has to pay a service charge of Rs 11 30 paisa, including 1.30 paisa.

The customer's service provider may charge a maximum fee of 5 rupees for transactions up to 5,000, 8 rupees for transactions between 5,000 and 10,000, and a maximum of 10 rupees for transactions above 10,000 in an electronic wallet transaction. If you have to transfer money from the wallet to the bank, you have been given the power to impose a service fee of 10 rupees regardless of the amount.