RBI will Reimburse Banks MDR Charges Effective January 1, 2017

RBI will Reimburse (प्रतिपूर्ति करना) Banks MDR Charges Effective January 1, 2017

The Reserve Bank of India has decided to reimburse banks Merchant(व्यापारी)  Discount Rate (MDR) charges on debit cards used by citizens for payment with effect from January 1, 2017. In December 2016, the government had decided to absorb the merchant discount rate (MDR) charges in respect of

debit card transactions for making payments to it to encourage(प्रोत्साहित करना) people to use digital payments post demonetisation.  RBI has directed the banks to forward their claim for reimbursement of MDR along with statutory auditor’s certificate to RBI’s Nagpur office on a quarterly basis.

For the quarter ending March 2017, the banks have been asked to file claim (दावा) by April 30.

Also, the banks will have to certify (प्रमाणित) that MDR charges for transaction amounts up to Rs 1 lakh have not been collected from the payer. 

Merchant Discount Rate (MDR) 

MDR is a charge to a merchant by a bank for accepting payment from their customers in credit and debit cards every time a card is used for payments (like swiping) in their stores.