TRAI Increases Processing Fee, Now Pay Rs.1 more For Every Mobile Recharge above Rs.20

India’s prepaid mobile service subscribers now will have to pay an extra Rs. 1 every time they recharge or Top-Up their prepaid account for more than Rs. 20. This appears to be a setback for more than 90% mobile service users in the county.

India’s telecom watchdog Telecom Regulatory Authority of India  (TRAI)  has today issued amendments to the Telecommunication Tariff Order (TTO) enhancing the ceiling or processing fee from Rs.2 to Rs.3 for certain category of top-up vouchers used by mobile prepaid subscribers for addition of monetary value (talk-time) to their account.

Currently a ceiling / processing fee of Rs.2 is applicable on all top-ups which provide monetary value (talk-time). After issue of this new tariff amendment the processing fee applicable for top-up vouchers will be as follows :

(i) Denominations having maximum retail price below Rs.20 -:  Rs.2  as ceiling.

(ii) Denominations having maximum retail price of Rs.20 or more -: Rs.3 as ceiling.

While increasing the processing fee on top-up vouchers the Authority has sought to protect the interests of low end users by excluding the lower denominations of top-up vouchers from the hike. The Authority has also mandated the service providers to ensure availability of Rs.10 denomination as top-up voucher.

Earlier through the Union Budget, finance ministry of govt of India has increased service tax (2% more from the existing) on mobile services and now with the increase in processing fee will become another big blow to “price and talk-time conscious” prepaid mobile users in the country.

The new order by TRAI comes after telecom operators body COAI (GSM) and AUSPI (CDMA – UAS)  made written request to the TRAI that there have been inflationary pressures over the last three years, since the ceiling/processing  fee of Rs.2 was prescribed by TRAI.

Reported By

Leave a Reply

30 Comments on "TRAI Increases Processing Fee, Now Pay Rs.1 more For Every Mobile Recharge above Rs.20"


Sort by:   newest | oldest
Arvind Hannurkar
April 13, 2016 1:41 am 1:41 AM
From Recharge amount tax is deducted as follows: Recharge amount ST PF Actual TT 010.00 Rs. 01.22 01.00 07.74 030.00 03.80 03.00 23.20 050.00 06.33 03.00 40.67 070.00 08.87 03.00 58.13 100.00 12.67 03.00 84.33 110.00 13.93 00.00 112.00 Government will get good revenue if they may apply excise on International call, sales tax on local calls, Central sales Tax on STD calls, Actually these are not concerned with mobile holders. But if Govt. may apply then we can enjoy only half amount of TT, and Govt. will earn good revenue. This is very necessary to kill the mobile holders… Read more »
March 24, 2016 10:32 am 10:32 AM

Why all mobile networks are deducting pf amount on all recharges…..please help me with this if anyone knows

April 23, 2012 4:46 pm 4:46 PM
Dear All, It has been mandatory by TRAI in its NATIONAL CONSUMER PROTECTION REGULATION DATED -: 6th JANUARY 2012 THE FOLLOWINGS- CHAPTER 3-: 7– Information to pre-paid consumers relating to usage.— Every service provider shall, within forty five days ( amended to 75 days later ) from the date of issue of these regulations, immediately on making any deduction from the account of a prepaid consumer, provide through SMS, the following information:- (a) after every call, — (i) duration of the call; (ii) charges deducted for the call; (iii) balance in the account; and (iv) in case of Special Tariff… Read more »