wordpress blog stats
Connect with us

Hi, what are you looking for?

PCI: Banks may keep bulk of MDR reimbursements instead of sending to payment firms

The Payments Council of India (PCI) has said that banks are yet to reimburse the Merchant Discount Rate (MDR) to payment companies, despite having received the necessary subsidies from the government to do so. MDR is the charge paid by a merchant to a bank for facilitating a digital transaction, and is a percentage of the transaction amount. In December 2017, the Indian government started a scheme to reimburse Merchant Discount Rates on transactions up to Rs. 2,000 to promote digital payments. This scheme was applicable for two years from January 1, 2018 on all transaction made through debit cards, BHIM UPI or Aadhaar Enabled Payments Systems (AEPS). Is the MDR losing monetary value midway? According to PCI, which has around 100 payments firms as its members, the payments industry is concerned that banks will only pass on a small proportion of the MDR reimbursements to payment companies, while retaining the bulk of it themselves. Consequently, this will impact the operating ability of these firms as MDR is a major source of their revenues, a statement from PCI said. The payments body estimates that around 80% of all debit card transactions by volume and 60% by value, involve amounts under Rs 2,000. However, the time period from which these numbers have been taken remains unclear. Regardless, this translates to a significant amount of MDR revenues that the payments companies have yet to receive. According to PCI, this is on top of the high costs and low margins ecosystem that the payments companies…

Please subscribe/login to read the full story.
Written By

Free Reads

News

Experts debate the efficacy of ex-ante regulation in India's fast-evolving digital market. Is preemptive control the answer?

News

Lacking plans about the use and regulation of artificial intelligence, use of drones, health stack, cybersecurity and Smart Cities, the manifesto does not have...

News

WhatsApp’s new policy lowers the age limit to 13, facing fierce criticism from child protection groups in Europe.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

NPCI CEO Dilip Asbe recently said that what is not written in regulations is a no-go for fintech entities. But following this advice could...

News

Notably, Indus Appstore will allow app developers to use third-party billing systems for in-app billing without having to pay any commission to Indus, a...

News

The existing commission-based model, which companies like Uber and Ola have used for a long time and still stick to, has received criticism from...

News

Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...

News

Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...

You May Also Like

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ