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In a Bid to Boost Digital Payments, Government to Reimburse MDR on Transactions Up to Rs 2,000

1 >MDR is payable by the trader to the bank
2 >Applicable on paym ents made through debit cards

3 >Payments must be made via BHIM UPI or Aadhaar-           enabled system

The government will bear the MDR charges on transactions up to 

Rs 2,000 made through debit cards, BHIM UPI or Aadhaar-enabled

 payment systems to promote digital transactions, IT Minister 

Ravi Shankar Prasad said on Friday.

MDR is charged on payments made to merchants through BHIM UPI 

platform and AePS (Aadhaar enabled Payment System).

The merchant discount rate (MDR) will be borne by the government

 for two years with effect from January 1, 2018 by reimbursing the same to 

the banks.

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