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Government to Bear MDR Charges on Digital Transactions for 2 Years
December 18, 2017
To push digital payments across the nation, the government will bear the Merchant Discount Rate (MDR) charges for 2 years for transactions up to Rs. 2,000 via Aadhaar-enabled payment systems, BHIM UPI channel, or debit cards, IT Minister Ravi Shankar said.
With effect from January 1, 2018, the government will reimburse the MDR charges to the banks up to two years, thereby lifting the burden from the merchants as well as the customers.
The decision will set the exchequer back by a little more than Rs. 2,500 crores.
