National Payments Corporation of India (NPCI) on Friday said it has rationalized merchant discount rate (MDR) for RuPay debit card transactions, effective October 20, 2019.
The rationalisation has be done across point of sale (PoS), eCom and BharatQR code based merchant transactions, a press release said.
It said MDR has been revised to 0.60% for transaction above ₹2,000 with a maximum cap of ₹150 per transaction.
Presently, this is capped at 0.90% for transaction above ₹2,000 with higher cap of ₹1,000 per transaction.
The card based QR transactions (Bharat QR) MDR also has been reduced to 0.50 per cent with a maximum cap of ₹150 per transaction, to boost asset lite infrastructure for digital payments.
"With the reduction and capping of MDR merchants will now be encouraged to accept debit cards, which up till now they were averse due to higher MDR structure," NPCI's managing director and CEO Dilip Asbe said. PTI HV AP AP