Centre Directs Banks to Block MDR Charges on Digital Pay
By ThePip Desk
The Indian government directs banks to strictly prevent Merchant Discount Rate charges from being passed to customers for RuPay and UPI digital payments.
The Indian government has issued a directive to banks, mandating that they ensure Merchant Discount Rate charges are not transferred to customers. This move aims to protect consumers from additional costs when making digital payments.
Enforcing the Zero-MDR Policy
The government reiterated that transactions made via RuPay debit cards and the Unified Payments Interface are subject to a zero-MDR policy. This means no charges should be levied on these specific payment methods.
Banks have been instructed to monitor compliance closely and prevent any attempts by merchants or intermediaries to bypass these regulations. Such attempts include imposing surcharges on digital transactions.