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RBI proposes cutting of merchant discount rate

Seeks public opinion in its concept paper on card acceptance infrastructure

BS Reporter  |  Mumbai 

The Reserve Bank of India (RBI) has proposed to rationalise the merchant discount rate (MDR), or the fee a merchant has to pay a bank to access its payment infrastructure. While the central bank did not provide any solution, it has asked public opinion in a concept paper on card acceptance infrastructure. In the concept paper, RBI noted that MDR "often acts as a disincentive," as the cap prescribed by the regulators were treated as a floor and the benefit of lower MDR "not really accruing to smaller merchants." Larger merchants, with economies of scale, can ...

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RBI proposes cutting of merchant discount rate

Seeks public opinion in its concept paper on card acceptance infrastructure

Seeks public opinion in its concept paper on card acceptance infrastructure The Reserve Bank of India (RBI) has proposed to rationalise the merchant discount rate (MDR), or the fee a merchant has to pay a bank to access its payment infrastructure. While the central bank did not provide any solution, it has asked public opinion in a concept paper on card acceptance infrastructure. In the concept paper, RBI noted that MDR "often acts as a disincentive," as the cap prescribed by the regulators were treated as a floor and the benefit of lower MDR "not really accruing to smaller merchants." Larger merchants, with economies of scale, can ... image
Business Standard
177 22

RBI proposes cutting of merchant discount rate

Seeks public opinion in its concept paper on card acceptance infrastructure

The Reserve Bank of India (RBI) has proposed to rationalise the merchant discount rate (MDR), or the fee a merchant has to pay a bank to access its payment infrastructure. While the central bank did not provide any solution, it has asked public opinion in a concept paper on card acceptance infrastructure. In the concept paper, RBI noted that MDR "often acts as a disincentive," as the cap prescribed by the regulators were treated as a floor and the benefit of lower MDR "not really accruing to smaller merchants." Larger merchants, with economies of scale, can ...

image
Business Standard
177 22