RBI capped MDR on Debit Cards

RBI is prioritizing electronic payments to reduce the economy's dependence on cash. "India is the fifth largest in cash-to-GDP ratio and we are taking a series of steps on both retail and wholesale payment's side to reduce this," said deputy governor Chakrabarty . One of the interventions , he said, was the decision to reduce merchant discount rates (MDR) drastically on debit cards to encourage usage. The RBI recently capped MDR in debit card transactions to 0.75% up to Rs 2,000 and 1% beyond Rs 2,000 — a sharp cut given that debit and credit card MDRs have been similar in India so far.