All debit cards may get MDR waiver
NEW DELHI: India could expand the merchant discount rate or MDR waiver to all debit card networks including Visa and Mastercard as part of the country’s big plan to push digital payment systems.
“There is a thinking that the scope of the waiver be expanded to other payment systems,” an official said.The official said the government is keen to ensure acceptance of digital payment systems and is looking that various options.
The official said there has been a clamour from payments systems and banks for the government absorbing the MDR charges, but there is no thinking to take it up.
The official said banks are duty bound to provide for payment infrastructure keeping in view of the saving they will make on account of reduced expenditure on cash management.From January 1, MDR charges on payments via electronic modes Ru-Pay powered debit cards, UPI and UPI QR codes have been waived off.
The Central Board of Direct Taxes has also notified a fine of Rs 5,000 per day for businesses with a turnover of over Rs 50 crore if they fail to offer digital means of payments.