So Paytm had to bend due to market pressure. Its good that did removed those 2% charges, else everybody would have started charging it eventually as it happens in some small local shops. In my area many (if not all) small shops charge 2% extra for credit card payment.
But points raised by PayTM are also valid. Customers enjoy benefits from Credit card's loyalty points. E.g. I filled Petrol of Rs 1000 last month from Citibank's credit card points. I got Re 1 worth Petrol for 1 point. It really proves beneficial spending on Credit card for such points. Though I am aware that Bank do charge some interest at end of month for customers along with the charges they have for merchants who accept payment by credit cards.
Over all I feel this Credit card is tricky business. We either have to be expert to exploit it, or simply avoid it
the transfer page talks about nominal charges but does not appear in amount. i did not actually transfer to not sure how they can add fees at a later stage. but then they were adding 2% on actual payment page without showing it before.