Trai limits processing fee on top-ups

In a move that will provide relief to prepaid users recharging with lower denomination top-up vouchers, Telecom Regulatory Authority of India (Trai) on Monday said that the processing fee charged on top-up vouchers should not exceed 10 per cent of the value of the coupon or Rs 3, whichever is less.

The will also help in uniforming the processing fee for top up recharge voucher. At present, processing fee charged for top-ups of Rs 20 and above is Rs 3, while for top-ups below Rs 20, it is Rs 2.

“With the earlier formula, the telecom companies were charging the poor more, as a recharge voucher of Rs 20 attracted a 10 per cent processing fee and a Rs 100 recharge voucher will attract only 3 per cent processing fee,” said a government official. Processing fee is included in the MRP of a recharge coupon used by prepaid mobile service users in the country. Around 95 per cent of mobile phone users in the country are estimated to be prepaid users and a large number of them recharge with lower value vouchers.