In Budget 2020-21, the government prescribed zero Merchant Discount Rate (MDR),
Background
Analysis
NPCI
Merchant Discount Rate (MDR)
What NPCI had to do?
Expected Benefits
Drawbacks of the decision
Government and RBI Role
Conclusion
The Digital mode of payment system has been crucial for the real time transfer and instant services. It had played an important role in inclusive growth and development in the form of direct benefit transfers for government schemes. The need is to promote the home driven technology and to make rules and policies more competitive for the domestic products. In this wake the decision to make Zero MDR has to be taken by considering all the players and with active government and RBI participation.
Verifying, please be patient.