Infocomm Infocomm
24th NBFC100 TECH SUMMIT AWARDS 24th NBFC100 TECH SUMMIT AWARDS
BFSI AI SUMMIT BFSI AI SUMMIT
Home Regulators RBI SEBI TechINFRA Security Data Centre Cloud Services Government Reforms DBT Aadhaar GST Payments Payment Gateways ATM Point of Sale Payment Wallets Fintech Apps Banks Public Sector Private Sector Cooperative NBFCs Year Ender Magazine Magazine Subscription Articles Interviews Webinars Webinar Videos Video Series — Innovation Talk Upcoming Initiatives BFSI Events About Us Contact Us

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

AdvertisementElets BFSI AI Summit & Awards, Mumbai

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.

AdvertisementInfoComm India 2026

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.”

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➔ www.eletsonline.com/subscription/

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.

Our Coverage of News

Razorpay Partners with OpenAI to Help Indian Brands Advertise on ChatGPT

Razorpay has partnered with OpenAI to help Indian brands explore advertising opportunities on ChatGPT, potentially opening a new… Read more →

GreyLabs AI Partners with Federal Bank to Deploy Voice AI Across Customer Interactions

GreyLabs AI has partnered with Federal Bank to bring Voice AI into everyday customer interactions, with applications spanning… Read more →

HDFC Bank Appoints V.N. Srivatsan as Chief Compliance Officer

HDFC Bank has appointed V.N. Srivatsan as its new Chief Compliance Officer (CCO) for a three-year term, effective… Read more →

ICICI Prudential Life Insurance Appoints Sidharatha Mishra as MD & CEO

ICICI Prudential Life Insurance Company Limited has appointed Sidharatha Mishra as Managing Director and Chief Executive Officer, effective… Read more →

NBFCs Account for 47% of New-to-Credit Consumer Originations: FIDC-TransUnion CIBIL Report

Mumbai, October 5, 2026: Non-Banking Financial Companies (NBFCs) have emerged as a major gateway to formal credit in… Read more →

Federal Bank Appoints Virat Diwanji as Executive Director

Federal Bank has appointed Virat Diwanji as Executive Director, effective October 12, 2026, following approval from the Reserve… Read more →

whatsapp--v1