An establishment having large businesses of an annual turnover of more than Rs 50 crore will have mandatorily offer an electronic mode of payments to their customers from 1st November, said by Finance Ministry. Moreover, there is no Merchant Discount Rate (MDR) charged by payment and bank impose on the commercial transaction will be charged on either customer or merchants.
Payments through digital modes will make transactions for mid and large-sized businesses more transparent and thereby prevent tax evasion. Towards faster adoption of digital payments, finance minister Nirmala Sitharaman in the Union Budget said that business establishments with an annual turnover of more than Rs 50 crore will have to offer low-cost digital modes payments to customers and not impose charges or MDR on customers and merchants.
According to Sitharaman, business establishments having an annual turnover of more than Rs 50 crore should offer less cost digital modes of payment to their customers and Reserve Bank of India (RBI) and banks should absorb the cost of transactions.
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