Government Would Neither Amend Nor Withdraw Zero Merchant Discount Rate Policy

Government Would Neither Amend Nor Withdraw Zero Merchant Discount Rate Policy

Finance Minister Nirmala Sitharaman said that the government would neither amend nor withdraw the zero merchant discount rate (MDR) policy, nor compensate these companies on losses due to the waiving off the transnational charges in the upcoming budget.

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However, the minister assured the delegation that the banks would be mandated to continue their investment in acquiring merchants through payment service providers (PSPs) from the capital they save up Finance Minister Nirmala Sitharaman told a representation of digital payment industry executives the government
would neither amend nor withdraw the zero merchant discount rate (MDR) policy, nor compensate these companies on losses due to the waiving off the transactional charges in the upcoming budget.

However, the minister assured the delegation that the banks would be mandated to continue their investment in acquiring merchants through payment service providers (PSPs) from the capital they save up on account of handling less cash.

The overall credit growth to MSME segment slowed further in the second quarter (2QFY20) to about 5% year-on-year (yoy), as per a report by Kotak Securities Ltd.

Retail inflation rose to about 5-and-half year high of 7.35% in December 2019, surpassing the Reserve Bank of India’s comfort level, mainly due to spiraling prices of vegetables as onions were selling costlier. As per the data released by National Statistical Office (NSO), the spike in inflation in the vegetable segment was 60.5% during the month compared to December 2018.

For Detailed Information, Please Check Here Compiled by Canara Bank Officers’
Union Team Kerala- affiliated to All India Bank Officers’ Association

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