New Delhi: The National Payments Corporation of India (NPCI) has postponed the planned implementation of a payment-related change in view of the festive season. The organisation said it would be introduced shortly after Diwali, although a specific date has not yet been announced.
The decision is aimed at avoiding disruption during the busy festive shopping period, when digital transactions typically play a major role in retail payments.
What is the merchant discount rate (MDR)?
The merchant discount rate (MDR) is a fee that merchants pay to banks and payment service providers for processing payments through channels such as debit and credit cards, point-of-sale terminals and payment gateways.
The charge helps cover the costs of operating and maintaining payment infrastructure and transaction networks. MDR is generally borne by the merchant rather than charged directly to the customer.
Further details about the planned change, including its exact implementation date and scope, are awaited.
