The Union Cabinet  will waive Merchant Discount Rate (MDR) for all debit cards, BHIM and UPI transactions up to Rs.2,000 for at least 2 years, for increasing the digital payments.

Merchant Discount Rate is the rate charged to a merchant by the bank for giving debit and credit card services when payment is made at a merchant point of sale (PoS).

The Cabinet on Friday stated, “Merchant Discount Rate (MDR) applicable on all debit card/BHIM UPI/ AePS transactions up to and including a value of Rs 2000 will be borne by government for 2 years with effect from 1 January, 2018 by reimbursing same to the banks.”

Further, the government will reimburse the charges to banks for a period of 2 years, effective from January 1, 2018.

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