RBI may consider extending deadline for reduced Merchant Discount Rate: Dharmendra Pradhan

NEW DELHI: Petroleum Minister Dharmendra Pradhan today said RBI may consider extending deadline for reduced Merchant Discount Rate ( MDR) charges at petrol pumps beyond March 31 to promote digital transaction.

"RBI may reconsider looking into emerging acceptance of cashless payment, digital transactions. It is up to RBI how long they will extend that model of MDR," he said after meeting Finance Minister Arun Jaitley here.

The RBI had decided to slash MDR charges on payments made through debit cards and do away with levies on small transactions through mobile phones and Internet from January 1 to March 31.

The MDR for debit card payments, including for payments made to the government, has been capped at 0.25 per cent for transactions up to Rs 1,000 and 0.5 per cent between Rs 1,000-2,000, the RBI said in a notification.

The existing MDR cap is 0.75 per cent for transactions up to Rs 2,000 and 1 per cent for over Rs 2,000. However, there is no RBI cap on MDR on credit card payments.