If there is any charge on UPI payment, return the bank to the customers
Modi government has issued an advisory on banks on Sunday. The Finance Ministry has instructed the banks not to charge the UPI payment. He said that if there is any charge on the UPI payment after 1st January, the banks should return it to the customers. Let us tell you that some banks had received a complaint about charging the UPI payment.
Now a big announcement has been made by the Modi government to promote digital transactions. Transactions with UPI and RuPay Card from 1st January 2020, will not incur any merchant discount rate (MDR) fee. If the turnover of a business is more than Rs 50 crore, then it will have to have the option of these two digital payments. Through this, they will not charge their customers any kind of MDR fee on payment.
Meeting with All bank chiefs
It is worth mentioning that before the budget, Finance Minister Nirmala Sitharaman had a meeting with the bank heads. This decision was taken in this meeting. The Finance Minister said that it was announced in the Budget 2019, which is now being implemented. Earlier, as per the RBI directive, no MDR fee is charged on payments up to Rs 2000.
what is MDR fee?
When a customer swipes their debit card from the merchant’s point-of-sale (POS) terminal, the merchant has to pay a fee to their service provider, which is called the MDR fee. QR code-based online transactions also require MDR fee.