RBI proposes lower MDR from April 1 to keep digi-pay momentum

MDR to be on the merchant turnover basis, rather than the present transaction value-based slab-rate

The Reserve Bank of India (RBI) has proposed that the merchant discount rate (MDR or charge) on debit card transactions be rationalised on the basis of turnover.

Transactions up to Rs 2,000 do not attract a charge but this is to end on March 31.

The central bank issued draft guidelines on its website that propose the MDR be “on the basis of merchant turnover, rather than the present slab-rate based on transaction value”.

Besides, there should be differentiated MDR for the government and QR-code related transactions. Also, “there is a need to differentiate MDR between acquiring infrastructure involving physical