How it impacts returns of banks with significant PoS terminals needs to be seen

In a bid to provide a fillip to digital payments, the RBI’s decision to restructure the merchant discount rate (MDR) for debit card transactions on the basis of merchant turnover, rather than the present slab rate based on transaction value, is likely to see better debit card acceptance by small merchants. Capping the MDR at a flat 0.4 per cent of transaction value, for merchants with a turnover ...