State Bank of India (SBI) waived merchant discount rate (MDR) on the RuPay Debit Cards with immediate effect.
Zee Media Bureau
New Delhi: State Bank of India (SBI) waived merchant discount rate (MDR) on the RuPay Debit Cards with immediate effect.
The usage and awareness of electronic and digital channels in rural and semi-urban areas is, however, low, even though as a first step SBI has already opened more than 10 crore FI (Financial Inclusion) accounts, with majority of the customers having been issued RuPay Debit Cards, it said.
"In order to facilitate their transition to the digital payments systems, Chairman of State Bank of India, Arundhati Bhattacharya today announced that SBI will waive the merchant discount rate (MDR) on the RuPay debit cards with immediate effect up to 31st Dec, 2016," a press statement said.
Merchant discount rate is the rate charged to a merchant by a bank for providing debit and credit card services. The rate is determined based on factors such as volume, average ticket price, risk and industry.
In the wake of withdrawal of Rs 500 and Rs 1,000 denominations of bank notes by the government w.E.F. Nov 9, State Bank of India has been taking every possible steps to make it convenient for the customers to undertake transactions through its Branches as well as ATMs, it said.
In addition, State Bank of India is already offering various alternative electronic and digital payment solutions to its customers like Debit Cards, Pre-Paid Card, State Bank Buddy, Mingle, as well as Internet Banking and Mobile banking.
The Bank has also strengthened its Acquiring Infrastructure to ensure seamless transactions, as also to supplement cash dispensation to customers through its innovative solution Cash@PoS.