To give a fillip to digital India initiative and hence boost digital payments, big businesses with a turnover of over Rs. 50 crore will have to mandatorily offer digital mode of payment from November 1, said the finance ministry yesterday.
Also, the MDR or merchant discount rate and other charges levied by banks and payment systems on commercial transaction will not be imposed on both the merchants as well as customers.
Such payment via digital mode for large as well as mid-sized businesses will make transactions transparent and at the same time will help tackle the menace of tax evasion.
Further in a bid to promote digital transactions, the Finance Minister Nirmala Sitharaman in the Union Budget said that businesses with over Rs. 50 crore annual turnover will need to provide less costly mode of digital payments as well as not levy MDR on merchants and customers. Also, the cost in respect of such transactions should be borne by the RBI and banks.