The government declared banks or system providers will not impose charges or Merchant Discount Rate on customers as well as merchants on digital payments made to establishments having turnover in excess of Rs 50 crore from November 1.
- The government has said that banks or system providers will not impose Merchant Discount Rates (MDR) on customers/merchants on digital payment to large firms having a turnover in excess of Rs 50 crore.
- The directive will come into effect from 1st November 2019.
- FinMin Nirmala Sitharaman had said in her Budget speech that large business firms with annual turnover of more than 50 crore should offer low cost digital payment modes to their customers.
- Amendments have been made into the Income Tax Act as well as the Payment and Settlement System Act 2007 to enact the new provisions.