No MDR charges to levy on payment via RuPay, UPI from Jan 1: Finance Minister

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.


The Banking & Finance Post is an initiative of Elets Technomedia Pvt Ltd, existing since 2003.
Now, Elets' YouTube channel, a treasure of premier innovation-oriented knowledge-conferences and awards, is also active. To Subscribe Free, Click Here.

Get a chance to meet the Who's who of the NBFCs and Insurance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.