New Delhi: The central government has always been marching to make the country cashless. The government wants people in the market to use digital payments instead of cash. The government also argued the same behind demonetisation. The government believes that this will stop the flow of black money into the economy. In the same sequence, the National Payments Corporation of India has reduced the Merchant Discount Rate (MDR) on transactions with RuPay debit cards. The new rate will be effective from 20 October 2019. This discount given on debit card transactions will apply to all types of Point of Sale (POS).
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Apart from this, the new rate will also be applicable on Ecom and BharatQR code based merchant transactions. The MDR has been revised to 0.60 per cent for transactions above Rs 2,000. There will be a maximum of Rs 150 per transaction. Currently, MDR of 0.90% is charged on transactions above Rs 2,000. The maximum limit was fixed at Rs 1,000 per transaction.
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The MDR on Bharat QR i.e. card-based QR transactions has also been reduced to 0.50 per cent and the maximum MDR will be Rs 150 per MDR. According to the National Payments Corporation of India, lowering the MDR rate and lowering the maximum limit will now encourage businesses to transact with debit cards. Till now, he has been avoiding transactions through it due to the high rate. Many villages in the country have also been respected in terms of digital transactions. However, it will take time if it is fully implemented in the country.
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