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Home >> News >> RBI Proposed Reduce Debit Card Transaction Charge to Promote Digital Payment

RBI Proposed Reduce Debit Card Transaction Charge to Promote Digital Payment

Posted on: 17 Feb, 2017 Tags   MDR

IndiaNewsonWeb: 17 Feb, 2017, In the country to promote digital payment Reserve Bank of India (RBI) by debit card (ATM card) payments levied on merchant discount rate (MDR) has proposed a huge cut in fees. Just MDR fee on debit card payments have borne the burden of the customer. Because of this, to be materially digital payment than payment is expensive.


The RBI's new proposal

RBI annual turnover of Rs 20 million small businesses and insurance, mutual funds, educational institutions and government hospitals such as special category merchant fees for the bargain price of MDR has proposed 0.40 percent.

MDR for debit card transactions to rationalize about the draft circular is issued. The debit card payments through the merchant discount rate charged MDR. At present Rs 2,000 to a maximum of 0.75 percent of the transaction amount of over Rs 2,000 MDR think this rate is one per cent.

The credit card payment is not a limit set by the central bank on MDR. After demonetization RBI to cut these tariffs by 31 March.

According to the draft circular, the new fees will be effective from April. At the same time the central bank in the stores that offer the feature or service to the customer will not have to pay the fee will have to the information bar.

RBI in four categories of businesses in terms of MDDR fee sharing is proposed.

RBI will pay MDR fees to banks

RBI official tax paid by citizens via a debit card when banks merchant discount rate (MDR) will start paying fees.

December 2016, the government had decided that the use of debit cards for payment of various fees, he will bear on the MTR.

After demonetization government in the country was done to promote digital transactions.

The central bank said in a notification, follow the instructions of the government since January 2017, the Reserve Bank debit cards through a payment on account shall MDR charges to banks.

Banks' claims that they pay MDR send him with auditor certification.

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