Govt to bear debit card charges on digital transactions of up to Rs 2,000

The outgo on account of reimbursement for MDR charges is estimated to be Rs 2,512 cr over the next two years

In an effort to boost digital payments in India, the government has decided to bear the merchant discount rate (MDR) charges for transactions up to Rs 2,000 made through debit cards, BHIM-UPI or Aadhaar Pay for two years. The decision will be effective from January 1, when the Reserve Bank of India’s (RBI’s) revised guidelines on the MDR come into force. The MDR is the rate charged to a merchant by a bank for providing debit and credit card services. It is expressed as a percentage of the transaction amount.
 
The outgo on account of reimbursement for MDR charges