There would be tremendous growth in acceptance of debit cards if monetary regulator, RBI allows banks to deduct fees for all payments made using debit cards in the same way as is done when customers withdraw money from third party ATMs.

Some bankers and retailers strongly recommend such an action as they say it would surge the utilisation of debit cards.

Retailers feel that this step if taken will bring a saga of change in the payment system in India.

"When customers pay through debit cards, thereby paying through their bank accounts in what could be the cheapest modes of money transfer, there still exists a high cost factor, thanks to the existing high MDR on debit cards that fails to be justifiable," the Retail Association of India said.

Bank of Baroda said that although there is no distinction made between debit and credit card payments when any of these is swiped, but a distinction can however be made by reducing charges when debit cards are swiped.