RBI reduces merchant discount rates for debit cards

RBI reduces merchant discount rates for debit cards

In a bid to encourage electronic payments, the Reserve Bank of India (RBI) has made a decision to cap the Merchant Discount Rate (MDR) applicable on transactions conducted via debit cards from January 1, 2018. MDR is the rate charged to a merchant by a bank for providing debit and credit card services.

For QR code-based card acceptance, merchant charge will not exceed 0.8 per cent of the transaction value with a cap of Rs 1,000.

For merchants with a turnover above Rs 20 lakh (during the previous financial year), MDR will notexceed 0.9 per cent per debit card transaction and MDR paid to the bank can not exceed Rs 1,000. These charges are effective from 1 January 2018, RBI said in a circular. For transactions below Rs1,000, it is 0.25%; between Rs1,000 and Rs2,000, it is 0.5%.

Before that MDR rate did not exceed 0.75 per cent of the transaction amount for a value up to Rs 2,000 and did not exceed 1 per cent for transaction amount for value above Rs 2,000.

Stock'S Earning Overview Lam Research Corporation (LRCX)
This simple numeric scale reads 1 to 5, and it changes brokerage firm Moderate Sell recommendations into an average broker rating. Always volatility measures make charm for active trader; price volatility of stock was 2.17% for a week and 2.82% for a month.

It can be noted that midway through demonetization late November, Prime Minister Narendra Modi had said the note-ban was meant to increase the cashless component in the economy.

RBI in the monetary policy said, "In recent times, debit card transactions at "Point of Sales" have shown significant growth". The value of these transactions rose to Rs3.3 trillion from Rs1.2 trillion. For transactions above Rs 1000 but less than Rs 2000, MDR was kept at 0.50% of the transaction value. The RBI also said it will create a framework for asset-light acceptance infrastructure like QR- code based payment+ gateways. "RBI should have regularized the prevalent MDR structure", said A.P. Hota, former managing director and CEO, National Payments Corp. of India. If the transaction is conducted via a QR code, the MDR has been further reduced to 0.30%. One basis point is one-hundredth of a percentage point.

Earlier in the month of February, the RBI had circulated a draft of MDR seeking public comments and views over it.

For small merchants with turnover up to Rs 20 lakh (during the previous financial year), the charge on debit card payments has been set to not exceed 0.40 percent, with an upper cap of Rs 200 per transaction. "This new rule will leave money on the table for merchants so that they add more technology". This definitely should be good for SMEs to adopt digital payments.

Related news:

Hot News

isis-killer-beheading-video-story-top Bigg Boss 11, Day 66 HIghlights: Akash forcefully kisses Shilpa Shinde
Dec 07, 2017 - 07:07
Akash later even asks Arshi what thing of his he should leave for her in the house, following which Arshi breaks down. Later, Hina told Vikas and Hiten that she desperately wanted to become the captain but neither was convinced.

How Insiders and Institutions are Trading Emerson Electric Co. (EMR)
Dec 07, 2017 - 07:01
The industrial products company reported $0.83 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.83. The sales growth rate for a stock is a measure of how the stock's sales per share (SPS) has grown over a specific period of time.

isis-killer-beheading-video-story-top The Canadian National Railway (CNI) Position Lowered by BB&T Corp
Dec 07, 2017 - 06:57
Stratos Wealth Partners Ltd decreased Ishares Tr (IJT) stake by 2,659 shares to 9,904 valued at $1.55 million in 2017Q2. Northwestern Mutual Wealth Management Co. grew its holdings in Canadian Pacific Railway by 23.6% in the second quarter.

isis-killer-beheading-video-story-top Met Éireann issues snow-ice warning for country
Dec 07, 2017 - 06:56
Northwest winds of 55-65km/h are expected to gust 110-110km/h, with the strongest winds in coastal areas and over high ground. It will also be foggy - especially on the hills - but on a brighter note it won't be that cold (11 to 13 degrees).

Taurus Asset Management LLC Position In Jpmorgan Chase & Co (JPM) Was Increased
Dec 07, 2017 - 06:55
In related news, General Counsel Stacey Friedman sold 2,099 shares of the stock in a transaction dated Thursday, October 26th. The stock witnessed 4.25% gains, 17.32% gains and 25.99% gains for the 1-month, 3-month and 6-month period, respectively.

isis-killer-beheading-video-story-top China criticises India for crashed drone near border
Dec 07, 2017 - 06:33
An Indian drone has been reported to have "invaded" China's airspace and crashed, according to Chinese state media. China stakes claim to nearly all of Arunachal Pradesh describing it as part of southern Tibet.

Sells 12281 Shares of Fifth Third Bancorp (FITB)
Dec 07, 2017 - 06:29
Out of 2 Wall Street analysts rating Artesian Resources, 0 give it "Buy", 0 "Sell" rating, while 2 recommend "Hold". Cipher Capital LP purchased a new stake in shares of Fifth Third Bancorp in the 3rd quarter worth about $1,537,000.

B. Riley Financial Inc. Takes $468000 Position in Realty Income Corporation (O)
Dec 07, 2017 - 06:29
For the past quarter, shares have been 6.28%, and performance for the past month comes in at 7.44%. (NYSE:SLG). The stock of Union Pacific Corporation (NYSE:UNP) has "Hold" rating given on Friday, November 10 by Robert W.

Blackstone Group LP (BX) Shares Sold by Garrison Bradford & Associates Inc
Dec 07, 2017 - 06:24
Out of 5 Wall Street analysts rating First Business Financial, 1 give it "Buy", 0 "Sell" rating, while 4 recommend "Hold". The fund owned 32,024 shares of the asset manager's stock after purchasing an additional 24,514 shares during the period.

Corcept Therapeutics (CORT) Receives Media Sentiment Rating of 0.13
Dec 07, 2017 - 06:23
The stock of Corcept Therapeutics Incorporated (NASDAQ: CORT ) earned "Buy" rating by Piper Jaffray on Thursday, August 24. Out of 4 Wall Street analysts rating Corcept Therapeutics, 4 give it "Buy", 0 "Sell" rating, while 0 recommend "Hold".

isis-killer-beheading-video-story-top American Electric Power Company, Inc. (NYSE:AEP) Overpriced by -2.1%?
Dec 07, 2017 - 06:20
The stock has "Buy" rating by SunTrust on Monday, December 4. (NYSE:WGO) has "Buy" rating given on Monday, April 24 by CL King. Nine equities research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company.

isis-killer-beheading-video-story-top Pentagon: Four times as many USA troops in Syria than previously acknowledged
Dec 07, 2017 - 06:11
Last month, the USA said there were only 503 United States troops in Syria and 5,262 U.S. troops in Iraq. With the liberation, fewer US forces are needed to support Iraqi and Syrian forces kinetically.

isis-killer-beheading-video-story-top Pearl Harbor Remembrance Day ceremony set for Veterans Memorial Park
Dec 07, 2017 - 05:43
The American Legion Auxiliary encourages everyone to do what they can to keep Pearl Harbor a part of our national consciousness. More than 300 Japanese airplanes attacked the naval base near Honolulu, Hawaii, just before 8 a.m. that Sunday.

Clair College Takes A Hit As More Students Dropout
Dec 07, 2017 - 05:41
Clair officials were happy at the start of the year, thanks to a record enrollment in the fall semester of 10,000 students. The college says 73 per cent of the 964 students who took up the province's offer are in their first semester.

isis-killer-beheading-video-story-top Man trapped by legs in oil tank
Dec 07, 2017 - 05:38
A rescue operation was launched at the Auburn work site on Chisolm Rd about 8.45am following reports three men had been injured. Special operations paramedics have been dispatched to the six-metre high Value-Added Tax "shaped like a large battery".