RBI to reimburse banks MDR charges effective 1 January

'In order to operationalise the (government's direction), the Reserve Bank will reimburse banks MDR on debit cards used for payment of tax and non-tax dues to the government of India with effect from January 1, 2017,' the central bank said in a notification.

PTI February 16, 2017 18:27:23 IST
RBI to reimburse banks MDR charges effective 1 January

Mumbai: The Reserve Bank will start reimbursing MDR charges to banks for payments made since January 1 through debit cards by citizens, in line with
the government's move to further digital solutions.

RBI to reimburse banks MDR charges effective 1 January

Reuters

In December 2016, the government had decided to absorb the merchant discount rate (MDR) charges in respect of debit card transactions for making payments to it. The move was aimed to encourage people to use digital payments post demonetisation.

"In order to operationalise the (government's direction), the Reserve Bank will reimburse banks MDR on debit cards used for payment of tax and non-tax dues to the government of India with effect from January 1, 2017," the central bank said in a notification.

Banks have been asked to forward their claim for reimbursement of MDR along with statutory auditor's certificate, as in the case of agency commission claims, to
RBI's Nagpur office on a quarterly basis.

Also, the banks will have to certify that MDR charges for transaction amounts up to Rs 1 lakh have not been collected from the payer.

The banks have been asked to file claim by April 30 for the quarter ending March 2017.

Updated Date:

also read

Moody's upgrades India's outlook to stable, cites receding downside risks to economy and financial system
Business

Moody's upgrades India's outlook to stable, cites receding downside risks to economy and financial system

The sovereign rating by Moody's stands at ''Baa3'', which is the lowest investment grade, just a notch above junk status.

Banks to remain closed for 9 days starting tomorrow; check full list of October bank holidays here
India

Banks to remain closed for 9 days starting tomorrow; check full list of October bank holidays here

As mentioned above, some of the holidays will be marked in specific areas or cities only. Hence, these leaves are not uniform. Customers are advised to plan their visits to the bank accordingly.

RBI grants licence to National Asset Reconstruction Company, announces Indian Banks’ Association CEO
Business

RBI grants licence to National Asset Reconstruction Company, announces Indian Banks’ Association CEO

This move that will help kickstart operations of the bad bank. NARCL was incorporated in July in Mumbai following registration with the Registrar of Companies (RoC)