The Finance Minister announced that the Merchant Discount Rate charges on digital payments for businesses with over ₹50 crore annual revenues will be waived off from January 1, 2020.
Merchant Discount Rate (MDR)
The Merchant Discount Rate is the percentage of the digital transaction that a merchant pays to a bank for accepting payment from their customers.
- All shops, business establishments and companies with an annual turnover of ₹50 crore or more have been mandated to offer these(Rupay or UPI) modes of payment to customers.
- This cost is often passed on to the customer.
Payments Council of India
- Formed in 2013, it is a non-governmental body which represents Companies in payments and Settlement systems.
- It caters to the needs of the digital payments industry.
- The council works to promote payments industry growth and to support our national goal of Cash to Less Cash Society and Growth of Financial Inclusion.