National Payments Corporation of India (NPCI) on Friday said it has rationalized merchant discount rate (MDR) for RuPay debit card transactions, effective October 20, 2019. The rationalisation has been done across the point of sale, eCom and BharatQR code based merchant transactions, said a press release.
According to NPCI, MDR has been revised to 0.60 per cent for transaction above Rs 2,000 with a maximum cap of Rs 150 per transaction. Presently, this is capped at 0.90 per cent for transaction above Rs 2,000 with a higher cap of Rs 1,000 per transaction.
The card-based QR transactions (Bharat QR) MDR also has been reduced to 0.50 per cent with a maximum cap of Rs 150 per transaction, to boost asset lite infrastructure for digital payments.
“With the reduction and capping of MDR merchants will now be encouraged to accept debit cards, which up till now they were averse due to higher MDR structure,” said Dilip Asbe, Managing Director and CEO, NPCI.
Read EquityPandit’s Nifty Outlook for the Week