As per the IT Ministry, the government will bear the Merchant Discount Rate (MDR) charges on transactions up to Rs 2,000 made through debit cards, BHIM UPI or Aadhaar-enabled payment systems to promote digital transactions.
MDR is charged on payments made to merchants through BHIM UPI platform and AePS (Aadhaar enabled Payment System). The merchant discount rate (MDR) will be borne by the government for two years with effect from January 1, 2018 by reimbursing the same to the banks.
What is Merchant Discount Rate?
It is a charge to a merchant by a bank for accepting payment from their customers in credit and debit cards every time a card is used for payments (like swiping) in their stores. The MDR is expressed in percentage of the transaction amount.
Static/Current Takeaways Important for RBI Assistant Mains 2017 Exam-
- Present Information & Technology Minister of India- Ravi Shankar Prasad.
Source- The Economic Times