RuPay Debit Card: Now making payments will be expensive! Know how much extra charge you will have to pay?

RuPay Debit Card: Now making payments will be expensive! Know how much extra charge you will have to pay? Newspoint | 13/03/2025 19:39:17

RuPay Debit Card: People's inclination towards digital transactions is increasing rapidly in India. Especially the use of UPI and RuPay debit cards is seeing a tremendous increase. Due to the steps taken by the government to promote Digital India and the increasing digital awareness of the people, today a large number of people in the country are giving priority to cashless transactions.

Till now, there is no fee (MDR) on the transactions done through them. MDR means Merchant Discount Rate. This is the charge that shopkeepers pay to their bank for processing digital payments. At present, the government has waived this fee. But now the government is planning to impose it again.

Will MDR be imposed on big traders?

According to media report ET, a proposal has also been sent to the government by the banking industry. In this proposal, it has been said that MDR will be imposed on shopkeepers whose annual turnover is more than Rs 40 lakh. The government is currently considering this proposal. The government can also implement a tier system. This means that big merchants will be charged more and traders will be charged less or no fee at all.

Why is it necessary to bring back MDR?

On this, banks and payment companies say that when big merchants are already paying MDR on Visa, Mastercard, and credit cards, then why not on UPI and RuPay? According to banks, the government had abolished it in 2022, at that time its purpose was to promote digital payments.

What is MDR and why is it charged?

MDR i.e. Merchant Discount Rate is the fee that shopkeepers pay in exchange for the facility of accepting payments in real time. When a customer makes a payment through a UPI or debit card, banks and payment companies have to bear the cost of infrastructure. This fee is charged to compensate for this expense.

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