Page 2 - Merchant Discount Rate Mdr

Govt to refund MDR losses to banks on digital payments for FY23

Payment companies like Visa and Mastercard have been seeking a level playing field with RuPay, claiming the government is favouring the latter

Reserve Bank may rationalise some payment charges, says industry

Others say central bank may relook zero merchant discount rate on RuPay, UPI

Government may compensate banks for loss of MDR, says IT secretary

The move is part of the Budget proposal, where the government has earmarked Rs 1,500 crore for the promotion of digital payments this fiscal

The zero MDR has affected the PoS business: Worldline's Deepak Chandnani

India has some 5.2 million PoS units, but a country of our size needs more, DEEPAK CHANDNANI, managing director, Worldline (South Asia and the Middle East), tells Raghu Mohan

Payments problem

Removal of MDR will affect innovation in fintech

MDR waiver: RBI may pay Rs 1,800 cr to banks to fund free transactions

Finance Minister Nirmala Sitharaman last month said no Merchant Discount Rate (MDR) charges will be applicable on transactions through homegrown RuPay and UPI platforms

Doing away with charge levied on merchants may hurt PoS machines deployment

The Budget proposed that businesses with annual turnover of more than Rs 50 crore shall offer low-cost digital modes of payment to their customers

MDR waiver to boost UPI payments, may hit earnings of banks, PoS providers

But the move will hit the earnings of banks and PoS providers

Govt to bear debit card charges on digital transactions of up to Rs 2,000

The outgo on account of reimbursement for MDR charges is estimated to be Rs 2,512 cr over the next two years

A tightrope walk

The merchant discount rate needs to be carefully balanced