Debit card charges likely to come down, Govt believes
Posted on: 07/Feb/2017 5:28:04 PM
The government intends promoting digital transactions and Arun Jaitley, the Finance Minister has clearly displayed confidence that the charges towards such payments will come down with increase in total volume. The Reserve Bank of India is taking necessary steps to fix Marginal Discount Charges imposed on transactions made with debit cards above Rs 2 lakh.
RBI is set to take a final call. As volume increases, the charge will come down, says Finance Minister during question hour of Rajya Sabha.
MDR rate for transactions up to Rs 1000 will be 0.25 percent, and up to Rs 2000, the rate is 0.50 percent. For transactions above Rs 2000, the rate is yet to be fixed and the work is still in progress.
For debit card transactions made with petrol companies, the rates are held with the oil companies while the same is absorbed by the government for payments with rail travel.
With newer technologies, digital transactions are being cheaper. More people are likely to get attracted towards digital transactions. The government officials are also requested to make use of digital money more.
