 "New debit card charges may push retailers back to cash transactions")
Increased debit card fee may push retailers towards cash transactions as the charges are quite high, said retailers.
The Reserve Bank of India has revised merchant discount rate (MDR) from January next year. MDR will be 0.4 per cent of the purchase value or Rs 200, whichever is lower for shops generating revenue up to Rs 20 lakh. For stores above that bracket, MDR will be at 0.9 per cent or Rs 1,000, whichever is lower. Currently, MDR is 0.25 per cent for purchases below Rs 1,000 and 0.5 per cent for those between Rs 1,000 and Rs 2,000.
The Reserve Bank of India has revised merchant discount rate (MDR) from January next year. MDR will be 0.4 per cent of the purchase value or Rs 200, whichever is lower for shops generating revenue up to Rs 20 lakh. For stores above that bracket, MDR will be at 0.9 per cent or Rs 1,000, whichever is lower. Currently, MDR is 0.25 per cent for purchases below Rs 1,000 and 0.5 per cent for those between Rs 1,000 and Rs 2,000.
