Govt nudges shopkeepers to accept card payments

As part of its efforts to promote digital payments after demonetising old high value notes, the government today nudged shop owners to use debit cards, saying it will reduce cash handling costs while digital transaction records will help them seek more funds from banks.
Merchants will benefit by encouraging debit card transactions as cost of digital transaction is lower than handling cash and deposit of cash is not required as the amount will be automatically credited to account, Finance Ministry said in FAQs on debit cards.
Credit history is created for the merchant which will help him in taking more support from banks and other financial initiatives of government time to time, it said.

Accepting payment cards, it added, can enable merchants to increase their revenues and promotes better customer service.
"Electronic payments offer customers more flexible payment options-faster checkout times for customers and a more efficient way of paying. Also, innovations such as Equated Monthly Instalment (EMI) payments, allow consumers the ability to purchase and take possession," the ministry said.
Highlighting the benefits of RuPay Debit card, it said, National Payment Corporation of India has introduced insurance cover in case of accidental death or permanent disablement of Rs 1 lakh for Non-Premium cards (RuPay Classic) and Rs 2 lakh for Premium cards (RuPay Platinum) to eligible RuPay card holders.

The RuPay insurance programme will continue for till March 31, 2017.

On some of the recent initiatives towards popularising debit card, the ministry said MDR (Merchant Discount Rate), which a shopkeeper pays the bank for POS transaction, is reduced to zero on debit cards till December 31.
"Although all banks have waived MDR up to December 31, customers are not required to pay additional amount even after that if demanded by the shopkeeper, as this is to be paid by the shopkeeper," it said.
Besides, excise duty payable on acquisition of POS machine which was earlier 16.5 per cent has been waived till March 31, 2017.