BackGovt is not considering to reimburse MDR: MeitY
No recommendation has been sent to the ministry of finance, the MeitY said in an email
PremiumThe government is not considering reimbursing merchant discount rates (MDR) for UPI and RuPay transactions, the information technology ministry said, even as it works with stakeholders to increase the popularity of digital payments.
“The ministry of electronics and information technology (MeitY), government of India, being the nodal ministry for the promotion of digital payments, is constantly working with all the stakeholders to increase the penetration of digital payments in the country. Presently, MeitY is not considering any proposal with respect to reimbursement of MDR. Also, no recommendation has been sent to the ministry of finance," the ministry said in an email. MDR is charged by banks and payment service providers from merchants on every transaction.
On 7 January, Mint reported that MeitY held meetings with digital payments firms to address their grievances over a lack of business model around UPI and RuPay payments infrastructure. The report, citing three payments company executives and a government official who were present at the meetings, said that MeitY was considering reimbursing a part of the MDR for UPI and RuPay transactions to help payments firms recover costs.
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