India to encourage electronic payments; Govt will bear merchant charge on debit card purchases

IANS
Saturday, December 16, 2017

In a bid to encourage electronic payments, the central government will reimburse the Merchant Discount Rate (MDR) applicable on transactions up to Rs 2,000 for the next two years.

According to the Minister of Electronics, IT and Law and Justice Ravi Shankar Prasad, the government will reimburse the MDR levied on transactions conducted via debit cards, BHIM UPI and Aadhaar enabled Payment System (AePS) on a transaction value of up to Rs 2,000 from January 1, 2018.

The decision to reimburse MDR to banks was taken by the Union Cabinet in its meeting held on Friday.

"The government today has taken a very major decision to accelerate digital payments in the country -- MDR charges -- of up to transactions worth Rs 2,000 shall now be reimbursed by the government," Prasad said at a press conference after the Cabinet meeting.

Consequent to the decision, transactions less than Rs 2,000 in value will not bear any additional form of MDR.

The reimbursements are estimated to cost the state exchequer Rs 1,050 crore in FY2018-19 and Rs 1,462 crore in FY2019-20.

The decision also entails formation of a committee comprising of "Secretary Department of Financial Services, Secretary Ministry of Electronics and IT and the CEO, National Payment Corporation of India (NPCI)" to look into the industry cost structure of such transactions which will form the basis to determine the levels of reimbursement.

The Union cabinet's decision follows the December 6, 2017 norms issued by the Reserve Bank of India (RBI) which put a cap on MDR applicable on transactions conducted via debit cards from January 1, 2018.

The RBI capped MDR for debit card transactions based on two newly created categories -- small merchants with turnover up to Rs 20 lakh and other merchants with turnover above Rs 20 lakh.

Accordingly, cap on PoS (Point of Sales) was kept at Rs 1,000 per transaction or 0.90 per cent of the transaction value for "other merchants", while that of Rs 200 or 0.40 per cent has been set for "small merchants".

The MDR for QR code-based transaction has been capped at Rs 200 or 0.30 per cent for "small merchants" and Rs 1,000 or 0.80 per cent for "other merchants".


Express your comment on this article

 
jinu simon john
Posted on Sunday, December 17, 2017

In my personal view , I think this is a good move - People have 2 options either to pay by cash/ Chq or pay by card. And Give a discount on the purchase on the usage of the card, you will attract more users for the card. But give a more relaxing period - 2 years is a short period.
regards
jinu simon john

Earth
Posted on Saturday, December 16, 2017

No one in this world is perfect...But no one allows to do crime and do wrong things...Those who does something wrong at anytime forgets that there is God watching them that time...Unfortunately this has become a joke and there are so many people to commit wrong doings and so many to criticise them, but no one can correct the situation...so wait and watch one day God will show all of us who is right and who is wrong...so much population on earth and very less in heaven...

XYZ
Posted on Saturday, December 16, 2017

@Human Being, it is your incorrect and biased opinion and it indirectly reflects who and what you are.

Indian
Posted on Saturday, December 16, 2017

@Human Being. Sir/Madam, just have to say one thing. God created us and said that its the mind which will differentiate between us and animals. Thus, if we have mind (better abilities than animals), then WHY VIOLENCE BETWEEN PEOPLE?? Cant people think what is right and wrong? Greed, more greed, power, useless thinking rather being productive are all problems among us which are helping politicians to incite us. But again I say, are we fools to hear and do exactly what are the saying? Just ignore my friend, let us do our task as a law abiding citizen of our country, whoever be the government (BJP or Congress doesnt matter anyways).

Human Being
Posted on Saturday, December 16, 2017

Current Govt is just killing the Citizens and drinking the blood by making several useless things,there is no development of Nation except making violence in between people.

Submit your comments...
     
Disclaimer: The views expressed here are strictly personal and IndiansinKuwait.com does not hold any responsibility on them. We shall endeavour to upload/publish as many of the comments that are submitted as possible within a reasonable span of time, but we do not guarantee that all comments that are submitted will be uploaded/published. Messages that harass, abuse or threaten other members; have obscene, unlawful, defamatory, libellous, hateful, or otherwise objectionable content; or have spam, commercial or advertising content or links are liable to be removed by the editors. We also reserve the right to edit the comments that do get published. Please do not post any private information unless you want it to be available publicly.
Image

A Walk in the Garden…

Our garden in Salmiya is an exciting learning-place… Every walk in it, teaches something every time

Image

Take Thoughts Outside Box

"Where are the songs of spring? Ay, where are they?’’ I sighed, when others were busy with Keats, S

Image

‘Be what you are, Do what you can’, a self-confident go getter, N.K. Ramachandran Menon

He believes, ‘No one can influence anyone’. He believes, ‘I can only be me and it is true for ever

Image

How to carry out a winning scientific project?

I have been involved in judging scientific projects in schools and colleges for the past three deca

Image

Extraordinary artist of ribbon work – Mrs Poornima

Hand Embroidery is one of the most beautiful artworks. There are variety of Embroideries which uses

Image

Work hard, but enjoy your job – Ravi Varrier spending 40 years in a company!

Spending long working years with a company may not be a big deal if you are a sincere employee. But

Image

Smart Investing - Diversification is the Mantra: Don’t keep all the eggs in one basket

Investment is an activity which everyone should be involved once they start earning. But where to i

Image

They are disconnecting…

“Why do I need to learn about India? After all, I am going to live here—in Kuwait—all my life… I wa

Image

I Learn Anew Every Day - Kevin Mathew

Kevin Mathew was the youngest (and only Indian) TEDx speaker at TEDxAlShuwaikh, Kuwait, on Septembe

Image

Wise Decision by Bhavans Middle East

The Chairman, Bhavans Middle East Mr. N. K Ramachandran Menon, and the Director of Bhavans Middle E

Image

A nostalgic and delicious train journey in Kuwait at Kerala Express Restaurant

A train journey during our annual vacation in India is definitely a nostalgic experience for many o

Image

Mughal Mahal Exotica - An aromatic and exotic twist to Indian food

When it comes to Indian food in Kuwait, no doubt ‘Mughal Mahal’ set an example among the residents

Image

Experience Indian Corner Tandoori Nights at Al Manshar Rotana Hotel

Al Manshar Rotana Hotel at Fahaheel, Kuwait launched an authentic Tandoori Night with an Indian cor

Image

Biryani & Kebabi restaurant opened at Arabia Mall in Egila

Biryani & Kebabi is the newest addition to Al Sabah & Kohli food and beverage brands. Al Sabah & Ko

Image

Prannoy, Saurabh guide Ahmedabad to PBL-3 semis

H.S. Prannoy powered Ahmedabad Smash Masters to a brilliant 4-1 victory over Mumbai Rockets, to adv

Image

Transfast Cricket League Season- 02

Has Been Accomplished Successfully With Great Entertainment presentation Ceremony was enlightened

Image

TransFast Cricket League Season-02 Grand Finals on Friday 05th January 2018

Another successful season of TransFast Cricket League with 48 teams in 4 Divisions & over 128 match

Image

AVC win big, AKFC hold Sparx, Soccer Kerala thrash Goa FC 6-0

8th week of the Kuwait Indian Football Federation (KIFF) League for JP D’Mello Trophy started with

Image

The Scorpions lift KDD – Kuwait Badminton League 2017 championship

The Scorpions lift KDD – Kuwait Badminton League 2017 championship held at IBAK Gym, Salwa. The