Reduced MDR charges on card payments likely

New Delhi, February 21 

The government is working to reduce Merchant Discount Rate (MDR) charges to encourage digital payments, Niti Aayog CEO Amitabh Kant said today.

Referring to RBI’s circular on rationalisation of MDR for debit card transactions, he said, “We are examining RBI’s draft circular on MDR. There are challenges to see MDR rates come down...We will meet those challenges.”

Last week, RBI had proposed to drastically cut MDR charges on debit card payments from April 1 to maintain momentum of digital transactions. — PTI