From Jan 1, no charges on RuPay, UPI transactions
FM Sitharaman Announces Plan After Meet With Bankers
TIMES NEWS NETWORK
New Delhi:29.12.2019
There is good news for consumers with the government on Saturday announcing that from January 1, there will be no merchant discount rate (MDR) charges for transactions using Ru-Pay debit card or UPI.
In addition, businesses with annual turnover of ₹50 crore or more will have to mandatorily offer the two digital payment options as the government makes a fresh push for mass use of digital payments.
“After extensive consultation with stakeholders, banks and so on, I’m happy to say that announcement which was made in the budget will see the notification coming on January 1, 2020, whereby those modes which are getting notified will not have charges under the MDR being levied on them,,” finance minister Nirmala Sitharaman said after a meeting with bankers.
The government and RBI had earlier ordered a waiver of MDR charges on transactions up to ₹2,000 using a handful of payment tools, which has now been expanded to cover all transactions, a senior official said.
The revenue department will issue the notifications, the FM said. In her maiden budget in July, Sitharaman had proposed that businesses should offer low cost digital modes of payment such as BHIM UPI, UPI QR Code, Aadhaar Pay, Debit Cards, NEFT, RTGS, etc. to their customers, and no charge or MDR will be imposed on customers to promote digital payment.
RBI and banks will absorb the costs from the savings that will accrue to them on account of handling less cash as people move to these digital modes of payment.
Banks have been instructed to launch campaigns to popularise RuPay debit card and UPI to strengthen the digital payment ecosystem and move towards a less-cash economy.
The finance minister launched a common e-auction platform to sell attached assets of defaulters for improved realisation of value. The platform is equipped with property search features and navigational links to all PSB e-auction sites, provides single-window access to information on properties up for e-auction as well as facility for comparison of similar properties, and also contains photographs and videos of uploaded properties.
In all, 35,000 properties have been uploaded on the platform by PSBs. PSBs have attached assets worth over ₹2.3 lakh crore over the last three financial years.
TAKING STOCK: Union finance minister Nirmala Sitharaman holding a review meeting of the banking sector with CMDs of public sector banks in New Delhi on Saturday
FM Sitharaman Announces Plan After Meet With Bankers
TIMES NEWS NETWORK
New Delhi:29.12.2019
There is good news for consumers with the government on Saturday announcing that from January 1, there will be no merchant discount rate (MDR) charges for transactions using Ru-Pay debit card or UPI.
In addition, businesses with annual turnover of ₹50 crore or more will have to mandatorily offer the two digital payment options as the government makes a fresh push for mass use of digital payments.
“After extensive consultation with stakeholders, banks and so on, I’m happy to say that announcement which was made in the budget will see the notification coming on January 1, 2020, whereby those modes which are getting notified will not have charges under the MDR being levied on them,,” finance minister Nirmala Sitharaman said after a meeting with bankers.
The government and RBI had earlier ordered a waiver of MDR charges on transactions up to ₹2,000 using a handful of payment tools, which has now been expanded to cover all transactions, a senior official said.
The revenue department will issue the notifications, the FM said. In her maiden budget in July, Sitharaman had proposed that businesses should offer low cost digital modes of payment such as BHIM UPI, UPI QR Code, Aadhaar Pay, Debit Cards, NEFT, RTGS, etc. to their customers, and no charge or MDR will be imposed on customers to promote digital payment.
RBI and banks will absorb the costs from the savings that will accrue to them on account of handling less cash as people move to these digital modes of payment.
Banks have been instructed to launch campaigns to popularise RuPay debit card and UPI to strengthen the digital payment ecosystem and move towards a less-cash economy.
The finance minister launched a common e-auction platform to sell attached assets of defaulters for improved realisation of value. The platform is equipped with property search features and navigational links to all PSB e-auction sites, provides single-window access to information on properties up for e-auction as well as facility for comparison of similar properties, and also contains photographs and videos of uploaded properties.
In all, 35,000 properties have been uploaded on the platform by PSBs. PSBs have attached assets worth over ₹2.3 lakh crore over the last three financial years.
TAKING STOCK: Union finance minister Nirmala Sitharaman holding a review meeting of the banking sector with CMDs of public sector banks in New Delhi on Saturday
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