You are here: Home » Economy & Policy » News
Business Standard

No charges on debit card transactions up to Rs 2,000: FinMin

MDR would be borne by govt for two years with effect from January 1, 2018 by reimbursing the same to banks

Press Trust of India  |  New Delhi 

New debit card charges may push retailers back to cash transactions

Customers will not have to pay any charges for payments through card, app and other made for up to Rs 2,000 from today onwards.

Last month, approved a proposal that will bear the merchant discount rate (MDR) charges on transactions up to Rs 2,000 made through cards, UPI or Aadhaar-enabled systems to promote transactions.

"Happy 2018. December Quarter rises 86 per cent to 145.6 million with value of Rs 13,174 crore," Secretary said in a tweet.

"Further impetus to payments, to reimburse charges for up to Rs 2,000 on cards/BHIM. Zero charges on merchants. Go Digital, embrace transparency," he said.

The merchant discount rate (MDR) will be borne by the for two years with effect from January 1, 2018 by reimbursing the same to banks.

The move will have an impact of Rs 2,512 crore on the exchequer.

The decision was taken at the Cabinet meeting chaired by

First Published: Tue, January 02 2018. 01:06 IST
RECOMMENDED FOR YOU