Government to reimburse MDR charges on small transactions

New Delhi Dec 15 (IANS) In a bid to encourage electronic payments the central government will now reimburse the Merchant Discount Rate (MDR) applicable on transactions worth Rs 2 000.

According to the Minister of Electronics IT and Law and Justice Ravi Shankar Prasad the government will reimburse the MDR on conducted via debit cards UPI and Adahar-based transactions.

The decision 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 -- up on transactions worth Rs 2 000 shall now be reimbursed by the government to the merchants and the banks " Prasad said at a press conference after the Cabinet meeting.

--IANS
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