Home / Knowledge / News / Apparel/Garments / Trade & consumers want MDR free digital payments: CAIT
Trade & consumers want MDR free digital payments: CAIT
Dec '17
Trade & consumers want MDR free digital payments: CAIT
Transaction charges like the merchant discount rate (MDR) applicable on debit card transactions are major deterrent in adoption and acceptance of digital payments in the country, the Confederation of All India Traders (CAIT) has said. If digital payment is encouraged without any MDR then more and more people would prefer to use digital payments.

“MDR is s complex issue as far as digital payments are concerned in India. Whether a lower or higher MDR ultimately it is an extra financial burden on either the merchant or consumer. Since cash is available and without any surcharge both merchant and consumers do not want to pay any charges while exchanging payments,” CAIT said in a press release.

It is estimated that government spends about 25,000 crore rupees annually on printing of currency and about 6,000 crore rupees on security, logistics etc of the currency. “If digital payment is intensified with no MDR, the cost of printing currency will come down and on the other hand banks will also invest less amount in transportation of currency for ATM filling and for other purposes. It will be a win-win situation for everyone,” CAIT said.

CAIT suggested that the government should subsidise MDR directly to the banks and thus protect both merchants and consumers from burden of MDR. It also suggested constitution of a separate body for RuPay, and making NPCI an independent regulator.

“The government should also constitute a Digital Payments Monitoring Board to monitor digital payment landscape in the country. Equal opportunity should be given to all technology providers to leverage Digital Payments in India to the best of their ability and resources,” the traders body suggested.

“Merely playing with MDR is a futile exercise and we want a MDR free digital payment society else cash is the available resource for meeting the transactions,” it added.

Last week, the Reserve Bank of India (RBI) lowered MDR to 0.4 per cent for businesses with turnover of less than Rs 20 lakh. For businesses over Rs 20 lakh, MDR is capped at 0.9 per cent. While the revised norms augur well for consumers as they will have to pay less on card payments, for merchants it means increased costs of operation. (RKS)

Fibre2Fashion News Desk – India

Must ReadView All

Pic: Shutterstock

Textiles | On 19th Feb 2020

CLMV nations urged to export goods items to Japan

Cambodia, Laos, Myanmar and Vietnam (CLMV) were recently encouraged...

Pic: Shutterstock

Apparel/Garments | On 19th Feb 2020

Turkey's apparel sector sets $19 bn export target in 2020

Turkey's apparel sector, which sold goods worth $17.7 billion to...

Pic: Waleeds / Shutterstock.com

Textiles | On 19th Feb 2020

Pakistan textile exports up 3.68% in July-Jan FY20

The value of textile and garment exports from Pakistan increased by...

Interviews View All

Luke Otten, Wigwam Mills Inc

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Nitin Bhatia, Trend Arrest

Nitin Bhatia
Trend Arrest

Setting up a brand for online selling is easy, but running the brand is not

Yashiki Gumber, Sahiba Fabrics

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Xavier Martinez,

Xavier Martinez

CADT Software & Drafting was founded in Spain in 1987 by Josep...

Manoj Sorathiya,

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Arup Chakraborty,

Arup Chakraborty

Mirrorsize is a US-based start-up that provides artificial intelligence...

Andreas Lukas, Andritz Nonwoven

Andreas Lukas
Andritz Nonwoven

With forces in engineering and process development, Andritz Nonwoven...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Mary-Cathryn Kolb, Brrr°

Mary-Cathryn Kolb

Atlanta-based private start-up Brrr° was founded in 2014 to develop...

Judy Frater, Somaiya Kala Vidya

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Jay Ramrakhiani, Occasions Elegance Wear

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

February 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Advanced Search