No MDR Charges On UPI And RuPay Card Transactions From January 2020

No More MDR Charges On UPI And RuPay Card Transactions From January 2020:

Finance Minister Nirmala Sitharaman announced today (27 December) that from January, there would be no merchant discount rate (MDR) fee on RuPay debit card and UPI payments.

All businesses with an annual turnover of more than ₹50 crore shall be mandated by the department of revenue (DoR) to provide the facility of payment through RuPay debit card and UPI QR code without levying any MDR fee.

Banks to popularise RuPay Debit card – FM

Nirmala Sitharaman here today discussed banking issues with chiefs of Public Sector Banks (PSBs), chief executive of Indian Banks’ Association and representatives of leading private sector banks.

All banks will also start a campaign to popularise RuPay Debit card and UPI.

Sitharaman will also discuss with PSBs the prospects of launching RuPay credit cards, a move that was recently announced by SBI Card

MDR is the cost paid by a merchant to a bank for accepting payment from their customers via credit or debit cards every time a card is used for payments in their stores. The merchant discount rate is expressed in percentage of the transaction amount. The MDR is distributed among three stakeholders – bank, PoS machine vendor and card companies – and varies from 0-2 per cent on credit card transactions.