With the government waiving MDR charges on Rupay and BHIM-UPI payments, the RBI may have to shell out about Rs 1,800 crore to banks towards free transaction during 2020, a report has said.
“Thus, though informal, the government has prompted that the RBI and the banks would fund the required MDR revenue to run the prescribed modes of payment.
This revenue, for RuPay debit card, is expected to be no more than Rs 1,000 crore for calendar year 2020, while for BHIM-UPI, it is expected to be another Rs 800 crore, the report said.
MDR is the cost paid by a merchant to a bank for accepting payment from their customers via digital means.
“RBI and banks will absorb these costs from the savings that will accrue to them on account of handling less cash as people move to these digital modes of payment,” she had said.

Comments to: MDR waiver: RBI may have to shell out Rs 1,800 Cr to banks

Your email address will not be published. Required fields are marked *

Attach images - Only PNG, JPG, JPEG and GIF are supported.

Login

Welcome to Typer

Brief and amiable onboarding is the first thing a new user sees in the theme.
Join Typer
Registration is closed.