On Tuesday, the Parliament was told that RBI (Reserve Bank of India) is working towards reduction in debit card MDR (Marginal Discount Charges) for transactions above two thousand rupees. During question hour, Arun Jaitley, Finance Minister told the Rajya Sabha that, work is in progress as RBI is deciding on it. He also stated that, with volumes of digital transactions increasing, debit card charges will definitely come down.
Mr. Jaitley stated that under the Payments & Settlements Act, the MDR rate has been fixed by the RBI at 0.25% for cash transactions up to Rs 1000 and 0.50% for transactions up to Rs 2000. These charges were introduced from 1 January, 2017 and will be applicable till 31 March, 2017.
According to the rate structure of the RBI announced in 2012, MDR for transactions above Rs 2000 has been capped at 1%.
Responding to a different question, Mr. Jaitley stated how the crucial decision on demonetisation of 500 and 1000 rupee notes was taken by the RBI board within a day’s notice.