Online Movie ticketing platforms are prohibited from taking internet handling fees from customers, says RBI

Key Highlights

RBI says online movie ticket booking platforms are not allowed to take internet handling fees from customers.

The customer only needs to pay 18 % Integrated GST (IGST) while booking tickets

As per MDR regulations, merchant has to pay internet handling fees to the bank.

Life is full of chaos and commotion so it’s hard to save some time to spend moments of serenity and blissfulness with friends and family. Most of us love to spend our time and enjoy few moments with our loving ones by watching movies and we take the assistance of various online booking platforms like BookMyShow or PVR cinemas and many more to book movie tickets. Have you ever thought why you are forced to pay an extra amount in the name of “internet handling fees” irrespective of ticket value? 

Vijay Gopal, President of Forum Against Corruption as filed an RTI with the RBI as well as the Ministry of Electronics and Information Technology to clarify whether these online portals are allowed to take Internet handling fees from customers for the online purchase of tickets or not?

You will be astounded by knowing that they are not allowed to take Internet handling fees from customers which they used to take. It is a violation of RBI’s Merchant Discount Rate (MDR) regulations that were issued by the Reserve Bank of India on Dec 6, 2017. As per the regulations, the bank charges from the merchant against every transaction made by customers using a credit or debit card on merchant’s platform as per MDR regulations and this amount is to be paid by merchant, not by customers. The customer only needs to pay 18 % Integrated GST (IGST) and online movie ticket booking platforms do not have the right to take Internet handling fees from customers. 

Gopal is the same person who is 2017 had filed a case in the Hyderabad Consumer Forum against INOX multiplex for overcharging from the MRP for buying a water bottle. The company had been fined Rs 5,000 for charging above MRP.

These online movie ticket platforms are taking more than 18% of the ticket price as internet handling fees and additional charges for enhancing their profits. They are burning customer’s money in filling up their pockets. It is a violation of MDR. If any online platform now charges any sort of internet handling fees would be charged with fines for doing this mistake and exploiting customers. It can only be ceased if we all deny from giving this extra amount and file a case in Consumer Forum if any online platform charges extra fees.

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