SBI has waived Merchant Discount Rate (MDR) on debit card transactions for all small merchants with the annual turnover of up to Rs 20 lakh for one year.

This, SBI said, has been done with a view to helping small merchants overcome apprehensions towards joining the "journey by installation" of PoS terminals in their shops. Pay Smart; How To Get A Swiping Machine?

"And, by actively canvassing the smaller merchants, the Bank is trying to live up to its motto of being a 'Banker to every Indian', the state-owned bank said, while affirming its commitment to promoting the government's digital initiative. To build-up the PoS acceptance infrastructure across the country, especially in areas which hitherto had low digital penetration, SBI has been deploying terminals in smaller towns, semi-urban and rural areas since beginning.

Close to 70 per cent of its PoS terminals are deployed in non-metro centers, and these can be found in more than 4,400 centers, SBI said, reports PTI.

"Going digital brings a lot of benefits not only to the country's economy, but also to merchants, in particular, by way of increased customer engagement and analytics, MIS, ease in account-keeping, auditing, and handling of cash," it said. Small merchants, however, sometimes are not able to realize/perceive the benefits, and consider MDR charges a drain on their profitability, it added.

Goodreturns.in