RBI said that Merchant discount rate on cards cannot be abolished.

Reserve Bank of India has said that Merchant Discount rate on Debit or Credit cards cannot be Abolished.

About Merchant Discount Rate:

• Merchant Discount rate is the fee that the store has to pay to the bank when they accept the payment through swiping.
• Recently RBI has revised the MDR rate and effective from 1^st January 2018, Small merchant has to pay 0.40 per cent of the bill value and others should pay 0.90 percent of bill value.
• RBI also framed the monetary limit for the MDR at Rs 200 for small merchant and Rs 1000 for others.
• Earlier it was 0.25 per cent levied transaction upto Rs 1000 , 0.50 Per cent between Rs 1000- 2000 and 1 per cent for more than that.
• Now even a small transaction in bigger merchants like Amazon, Reliance, More market, Shell and more  has to pay 0.90 percent . It will benefit the Banks and can earn more money than earlier.