No charges on debit card transactions up to Rs2,000 from now1 min read . Updated: 01 Jan 2018, 09:16 PM IST
Giving further impetus to digital payments, the government will reimburse charges for transaction up to Rs2,000 on debit cards and BHIM
New Delhi: Customers will not have to pay any transaction charges for payments through debit card, BHIM app and other payment made for up to Rs2,000 from Monday onwards.
Last month, union cabinet approved a proposal that government will bear the merchant discount rate (MDR) charges on transactions up to ₹ ,000 made through debit cards, BHIM united payments interface (UPI) or Aadhaar-enabled payment systems to promote digital transactions. “Happy Digital 2018. December Quarter BHIM transaction rises 86 per cent to 145.6 million with value of ₹ 13,174 crore," financial services secretary Rajiv Kumar said in a tweet.
“Further impetus to digital payments, government to reimburse charges for transaction up to ₹ 2,000 on debit cards/BHIM. Zero charges on merchants. Go Digital, embrace transparency," he said. The merchant discount rate (MDR) will be borne by the government for two years with effect from 1 January 2018 by reimbursing the same to banks.
The move will have an impact of Rs2,512 crore on the exchequer. The decision was taken at the cabinet meeting chaired by Prime Minister Narendra Modi.