NPCI reduces MDR to boost RuPay debit card deals

RuPay debit card

In a bid to boost the usage of debit cards, the National Payments Corporation of India (NPCI) has reduced the merchant discount rate (MDR) for RuPay debit card transactions across Point-of-Sale (PoS), eCom, and BharatQR Code-based merchant transactions.

RuPay debit card

The MDR has been modified to 0.60 percent for transactions above Rs 2,000, with a maximum cap of a Rs150. As of now, it is capped at 0.90 percent for transactions above Rs 2,000, with a higher cap of Rs 1,000 per transaction.

Furthermore , for card-based QR transactions (Bharat QR), the MDR has also been brought down to 0.50 percent, with a maximum cap of Rs 150 per transaction.

The step is initiated at a time when the Budget has proposed no MDR for customers and merchants with lenders and the Reserve Bank of India is bearing the cost of it.

However, payments companies and banks have shown their disagreement on the proposal , and the RBI and Union Finance Ministry are yet to notify the scheme.

 But NPCI’s latest move is likely to  built pressure for other payment operators as well to lower rates.

Dilip Asbe, Managing Director and CEO, NPCI, sai, “Significant reduction in MDR will encourage the use of debit cards… this MDR rationalisation, along with the similar significant reduction in UPI MDR, will benefit all categories of merchants.”

"Exciting news! Elets Banking & Finance Post is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!

Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔

Get a chance to meet the Who's who of the Banking & Finance 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.