Two public sector undertakings under the Railways Ministry, the Indian Railway Finance Corporation (IRFC) and Indian Railway Catering and Tourism Corporation (IRCTC), may postpone their planned initial public offerings (IPO), as the government wants to sort out various financial issues facing both companies, according to a report in Business Standard (BS). The Indian Railways subsidiary’s website is among the most busy portals in the country.
IRCTC waived off the convenience fee of Rs 20, post demonetisation.
Media reports further said that the Indian Banks’ Association (IBA) is discussing the issue with IRCTC and the Indian Railways with a view to resolving the matter. It said cards of any Indian bank can be accepted on any of the seven payment gateways. However, it expected banks to share a part of the convenience fees that they charge to customers for making online purchases on tickets, etc.
The Department of Investment and Public Asset Management has already appointed ICICI Securities, SBI Caps, IDFC, and HSBC bid managers for IRFC, while SBI Caps, IDBI, and Yes Bank will be in charge of taking IRCTC to the bourses.
Earlier, IRCTC asked banks to share half of the convenience fees collected by lenders.
Of course, IRCTC has given a multiple payment service tab under the payment section. We all know that earlier IRCTC introduced pay-on- delivery service to the customers. So, customers can book their tickets and they can pay at the time of delivery.
Banks charge the merchants for availing the benefits of card payments, popularly known as Merchant Discount Rate. PoD charges shall be Rs 90 plus sales tax for transactions up to Rs 5,000 and Rs 120 plus tax for transactions over Rs 5,000.
However, the banks reportedly did not share the amount with the Railway ticketing arm.