‘Users can now transact debit cards by linking their savings and current accounts to UPI. From now on, we are proposing to link credit cards to the UPI platform. We will implement this process by linking Rupee credit cards to UPI, ”the RBI said. However, it is not clear how the Merchant Discount Rate (MDR) will be applied for UPI transactions using credit cards.
Also Read: Shaktikant Das made a key announcement
Merchants were required to pay a small percentage of the transaction amount to banks and payment service providers for each transaction. But as per the rules brought in from January 1, 2020, Zero-MDR came into effect for UPI and Rupee cards. This means that there is no charge for UPI transactions through Rupee cards. The RBI has brought this to the benefit of merchants across the country using UPI transactions.
Up to 60 per cent of total retail digital payments in the 2022 financial year were made through UPI. The value of these transactions has crossed the trillion dollar mark. On the other hand, MDR charges on credit cards can be as high as two to three percent. Are there any MDR charges on these transactions by linking them to UPI now ..? Should be ..? That is not yet clear.
To find comprehensive information on more than 20 areas, you can subscribe to Economic Times Prime for exclusive Economic Times articles.
Also Read: Oh no how much work .. no less discount on oil ..? Today’s petrol and diesel rates
.
