MDR waiver: RBI may have to shell out Rs 1,800cr to banks

With the government waiving MDR charges on Rupay and BHIM-UPI payments, the RBI may have to shell out about Rs 1,800 crore to banks towards free transaction during 2020, a report has said.During 2018 and 2019, the Ministry of Electronics and Information Technology (MeitY) provided required MDR support to banks on debit cards and BHIM-UPI transactions having ticket size within Rs 2000, a report by IIT Bombay professor Ashish Das said.”Going forward, in case RBI provides the necessary support for debit cards and BHIM-UPI (which does not include mastercard/VISA debit cards), it may be prudent to let NPCI manage the logistics,” it said.Close In a bid to promote digital payments, Finance Minister Nirmala Sitharaman last month said no Merchant Discount Rate (MDR) charges will be applicable on transactions through homegrown RuPay and UPI platforms beginning January 1, 2020. related news Would like situation in Gulf to de-escalate as soon as possible: India I did not meet Raj Thackeray, no alliance on cards: Devendra Fadnavis Crude oil futures down 1.13% on rise in US crude stock The MDR pricing structure that National Payments Corporation of India (NPCI) had arrived at, effective October 2019, for RuPay debit card is 0.4 per cent… Read full this story

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