In its MPC meet today, apart from the other big moves as keeping the rep rate unchanged at 6%, the cap for the merchant discount rate shall be advised.

The directive apart from giving a fillip to the debit card transactions will also ensure business sustainability for all the parties involved.

MDR or Merchant discount rate is the amount the merchant is required to shell out to the banks for availing card services.

RBI after its monetary policy announcement said that a differentiated MDR for asset-light acceptance infrastructure and a cap on absolute amount of MDR per transaction will be prescribed.

Because of the high cost involved some of the merchants had been reluctant to introduce the card based payment system for their businesses.

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