In an exciting news for all the Debit Card users, Central Government has made it clear that there would be no MDR charge for digital payments up to INR 2,000. The MDR is the acronym of Merchant Discount Rate, is a particular percentage of commission charge levied on digital transactions by the banks and digital merchant windows. Well, informing that starting from January 1st, 2018 onwards, the government would pay MDR for all transactions under the announced cap on behalf of the customers. However, it must be added right herein that the service is going to be available only for 2 years from January 1st, 2018.
Though users will still have to pay the MDR at the payment gateway, govt. would refund the amount through UPI Bhim App.