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No MDR on Digital Payment to Large Firms

Published on October 19, 2019
Current context: The government has made changes in the charges put on digital payment to a large firm by customers or merchants.
No MDR on Digital Payment to Large Firms
  • The government has said that banks or system providers will not impose Merchant Discount Rates (MDR) on customers/merchants on digital payment to large firms having a turnover in excess of Rs 50 crore.
  • The directive will come into effect from 1st November 2019.
  • FinMin Nirmala Sitharaman had said in her Budget speech that large business firms with annual turnover of more than 50 crore should offer low cost digital payment modes to their customers.
  • Amendments have been made into the Income Tax Act as well as the Payment and Settlement System Act 2007 to enact the new provisions.

Question: 

Q.1 The Government has recently put _______ charge or Merchant Discount Rates (MDR) on customers/merchants on digital payment to large firms having a turnover in excess of Rs 50 crore? 
a. 2%
b. 3%
c. 4%
d. 5%
e. zero
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