This Rate Will Now Be Paid By The Government To Promote Digital Transaction : The government has taken a big step to promote digital transactions. Government will make payment of merchant discount rate (MDR) for 2 years on digital transactions upto 2000 rupees. This facility will be applicable from January 1, 2018. The central cabinet approved this decision on Friday.Information Technology Minister Prasad said that government will pay MDR to banks and traders to promote digital transaction. The government will refund this amount on debit card, payment by base, payment from the UPI (Bhima App).
Merchant Discount Rate is a commission, which gives the shopkeeper the bank for each card transaction service. Point of Sale Machine is imposed by the bank. A bank providing card to the card earned by MDR and gives some part payment service providers such as Visa, MasterCard or NPCI. Because of this charge, the shopkeeper feels reluctant to pay the card.Ravi Shankar said that a committee has been formed to make the system work properly.
Referring to the rapid growth of digital transactions in the country, he said that from April to September 2017, transactions worth 2 lakh 18 thousand and 700 crore have been made only by debit card. According to this, by the end of this financial year, it will be 4 lakh 37 thousand crores. He also said that the government is churning with the global players to make the country’s digital economy 1 trillion.Since 2012, the Reserve Bank of India has fixed a 0.75% MDR on the debit card transaction of 2000 rupees, while 1% MDR is taken on the transaction above 2000. In the last few days, the Reserve Bank has changed the MDR rate, which will be effective from January 1, 2018.
