After demonetisation, the RBI has reduced the charge till March 31. The new expenses, in keeping with the RBI draft, will come into effect from April 1.
For small merchants with annual turnover of Rs 20 lakh and special category merchants, consisting of utilities, insurance, mutual funds, instructional establishments and government hospitals, the MDR has been proposed at 0.40 in line with cent of the transaction price.The levy will be even much less at zero.3 according to cent if the transaction is thru virtual PoS (QR Code), the RBI said in a draft circular.
The RBI proposes to divide traders into four categories – small traders with turnover outdoor the ambit of GST (turnover much less than Rs 20 lakh yearly), authorities transactions, special category of merchants and rest with turnover in the ambit of GST (turnover above Rs 20 lakhs/yr).
In the case of government transactions, a flat price of Rs five has been proposed for transaction fee as much as Rs 1,000 and Rs 10 for transaction value of Rs 1,001 to Rs 2,000. The MDR will not exceed 0.50 in line with cent for transaction price above Rs 2,001 with a cap of Rs 250 per transaction.
For other traders, the MDR will no longer exceed 0.95 in step with cent and 0.85 in step with cent (in case of digital PoS).
The draft additionally asks banks to ensure that every one traders show the signage “No comfort or service price is payable by clients”.
The RBI delivered that the MDR for debit cards for petrol and fuel may be decided after the industry consulation method with the Oil Ministry is concluded.