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RBI to rationalise MDR to boost debit card transactions

IANS  |  Mumbai 

In a bid to encourage electronic payments, the Reserve of (RBI) has decided to rationalise the Merchant Discount Rate (MDR) applicable on transactions conducted via debit cards.

According to the RBI, it has been decided to rationalise the framework for MDR applicable on transactions based on the category of merchants.

"In recent times, transactions at 'Point of Sales' have shown significant growth. With a view to giving further fillip to acceptance of payments for purchase of goods and services across a wider network of merchants, it has been decided to rationalise the framework for MDR applicable on transactions based on the category of merchants," the RBI said in a statement post its fifth monetary policy review on Wednesday.

"A differentiated MDR for asset-light acceptance infrastructure and a cap on absolute amount of MDR per transaction will also be prescribed."

The country's central added that the revised MDR aims at achieving the twin objectives of increased usage of debit cards and ensuring sustainability of the business for the entities involved.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, December 06 2017. 18:08 IST
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