Lok Sabha Question No. 3190 (UNSTARRED), answered on 2018-01-05
Subject: Merchant Discount Rate
Ministry: FINANCE
Asked by: BIDYUT BARAN MAHATO, BALKA SUMAN, ASHOK SHANKARRAO CHAVAN, T. RADHAKRISHNAN, NARANBHAI KACHHADIA, VIJAY KUMAR S.R., RAJEEV SHANKARRAO SATAV, HEENA VIJAYKUMAR GAVIT, JAYAKUMAR JAYAVARDHAN, SUDHEER GUPTA, KUNWAR HARIBANSH SINGH, GAJANAN CHANDRAKANT KIRTIKAR, P.R. SUNDARAM, SUPRIYA SADANAND SULE

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION No. 3190

## Merchant Discount Rate

3190. SHRI BIDYUT BARAN MAHATO:

SHRI SUMAN BALKA:

SHRI ASHOK SHANKARRAO CHA VAN:

SHRI NARANBHAI KACHHADIYA:

SHRI S.R. VIJA YAKUMAR:

SHRI SATAV RAJEEV:

DR. HEENA VIJA YKUMAR GAVIT:

DR J JAYAVARDHAN:

SHRI SUDHEER GUPTA:

KUNWAR HARIBANSH SINGH:

SHRI GAJANAN KIRTIKAR:

SHRI PR SUNDARAM:

SHRIMATI SUPRIYA SULE:

## Will the Minister of FINANCE be   pleased t0 state:

- (a) whether the Government has decided t0 waive the Merchant Discount Rate (MDR) applicable On
- (b) whether the Government has decided to bear the changes that Merchants pay t0 banks on purpose of upto Rs. 2000 a debit card. Bhim or" Aadhaar recently. if so. the details thereof along with the aims and objectives thereto; using
- be bear as subsidy by the Government per annum;
- d) whether the Government has also bear the charges imposed by Paytm and e-commerce platform of a private mobile internet companies and if so, the details thereof;
- the estimated MDR to be reimbursed t0 banks with respect to the transactions 0f less than Rs 2000; and
- the other steps taken/being taken by the Government to accelerate the digital payment in the country?

## Answer

## The Minister of State in the Ministry of Finance (SHRI SHIV PRATAP SHUKLA)

- (a) Ministry of Electronies and dated December. 2017 has   decided to reimburse t0 absorb the Merchant Discount Rate (MDR) charges for all digital transactions using debit cards BHIMUPI and BHIM Aadhaar to Rs: 2.000\_ 28th equal Pay
- (b) MeitY small digital transactions using debit cards, BHIM-UPL and BHIM Aadhaar which are less   than Or equal t0 2.000 in  value, that   such  digital  payment  transactions are promoted. The MDR for the merchant on sueh transactions will effectively become zero and hence these digital transactions will come On par with cash transactions. Pay.
- Sl (c) & (e) This subsidization will be applicable from December; 2019. MeitY has estimated that the MDR to be reimbursed to the banks in respect of transactions 3[St
- d MDR applicable on the Debit Card/BHIM UPIAadhaar-Pay transactions and less than or equal to Rs. 2,000 in value will be borne by Government.
- MeitY has apprised that a Digidhan Mission has been   created for promotion of Digital Payments & Transactions. MeitY is working with multiple stakeholders including Banks; Central Ministries Departments and States for promotion of digital payments across the country. Departments are ensuring that all citizen touch affiliated with the departments have digital payments acceptance infrastructure, providing facility to accept money through multiple modes like cards BHIM/UPI, QR code, Aadhaar based payments. points