Current Affairs

FinMin announced no MDR on Transactions through RuPay and UPI

Current context: Union Finance Minister Smt. Nirmala Sitharaman has said that no Merchant Discount Rate (MDR) will be applicable on transactions through RuPay and UPI platforms.
FinMin announced no MDR on Transactions through RuPay and UPI 
  • She said that no MDR charge would be charged from 1st January 2020.
  • The step is taken to promote digital payments along with indigenously developed digital payment medium like RuPay and BHIM UPI over the payment gateway promoted by foreign companies.
  • The MDR is the cost paid by a merchant to a bank for accepting payment from their customers via digital means.
  • RuPay and UPI will soon be notified as to the prescribed mode of payment for digital transactions without any MDR by the Department of Revenue (DoR).
  • Now, all companies with a turnover of Rs 50 crore or more will be mandated to provide the facility of payment through RuPay Debit card and UPI QR code to their customers.
  • In the Budget Speech 2019-20, the Finance Minister has said that businesses should offer low-cost digital modes of payment such as BHIM UPI, UPI QR Code, NEFT, RTGS etc. to their customers to promote digital payment.
  • A campaign would be started by all banks to popularise RuPay Debit card and UPI.
  • Income Tax Act and the Payments and Settlement Systems Act, 2007 have been amended to give effect to these provisions.

Question: 

Q.1 The Finance Minister has recently announced that all companies with a turnover of ______________ or more will be mandated to provide the facility of payment through RuPay and UPI platform, without any Merchant Discount Rate (MDR)? 
a. Rs 25 crore
b. Rs 50 crore
c. Rs 100 crore
d. Rs 500 crore
FinMin announced no MDR on Transactions through RuPay and UPI FinMin announced no MDR on Transactions through RuPay and UPI Reviewed by Neha Verma on December 29, 2019 Rating: 5

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