For promoting digital payments, Union Finance Minister Nirmala Sitharaman announced that no MDR charges will be levied on transactions via homegrown RuPay and UPI platforms beginning January 1, 2020.
Department of Revenue (DoR) will soon issue a notification marking RuPay and UPI as the prescribed mode of payment for digital transactions without any Merchant Discount Rate (MDR), she said after meeting with CEOs of public sector banks.
Accordingly, all companies having a turnover of Rs 50 crore or higher will be directed by DoR to offer the facility of payment via RuPay Debit card and UPI QR code to their customers, she said.
MDR is the amount paid by a merchant to a lender for accepting payment from their customers through digital modes. The merchant discount rate is calculated in percentage of the transaction amount.
