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RBI sets cap on debit card usage fee

The Reserve Bank of India has set a cap on merchant discount rates,or usage fees, for debit card transactions from September 1 to encourage merchants to choose electronic payment mode over cash transactions, executive director G Padmanabhan said. “What we are struggling to achieve today in the country is whether the merchant on his own must be encouraged to receive a card transaction rather than a cash transaction,” he said on the sidelines of an event here on Monday. From September 1, RBI has asked banks to cap the merchant discount rate for debit card transactions up to Rs ...