New MDR rates to boost dig­i­tal pay­ments

India Business Journal - - NEWS ROUND-UP -

The RBI has come out with dif­fer­en­ti­ated mer­chant dis­count rates (MDRs) with ef­fect from January 1. MDR is the rate charged to a mer­chant by a bank for pro­vid­ing debit and credit card ser­vices. The new rates, aimed at pro­mot­ing dig­i­tal pay­ments, fixes MDR charges for small mer­chants with an­nual turnover up to Rs 20 lakh at 0.40 per cent with a cap of Rs 200 per trans­ac­tion by debit cards. For ac­cept­ing pay­ments via QR (quick re­sponse) code-based trans­ac­tions, the charge will be 0.30 per cent, sub­ject to a limit of Rs 200 per trans­ac­tion. In case the an­nual turnover of a mer­chant is over Rs 20 lakh, the MDR charges would be 0.90 per cent with a cap of Rs 1,000 per trans­ac­tion. If the trans­ac­tion is through QR code, the charges will be 0.80 per cent with the sim­i­lar cap.

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