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 1st Mar 2021

AfCFTA rules of origin talks to conclude in June: Egyptian

Talks are currently under way between member states of the African...

Pic: Fraser Group

Retail | On 1st Mar 2021

Frasers Group anticipates £100-mn hit from lockdown

Frasers Group recently said it could take a hit in excess of £100...

Pic: Shutterstock

Retail | On 1st Mar 2021

TJX Companies FY21 sales fall 4% to $32 bn

The TJX Companies, a US-based leading off-price apparel and home...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

In 10 years' time, everything will have the responsible factor integrated

Pinkesh Jain, Everflow Petrofils Ltd

Pinkesh Jain
Everflow Petrofils Ltd

‘An innovative technology which India needs desperately is the...

Textile Industry, Head honchos

Textile Industry
Head honchos

Strike a balance between handmade in India and 'Make in India'

Vikas Banduke,

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Luciano Sardini,

Luciano Sardini

A consolidated reality in Italy and internationally, IMA Spa is well-known ...

Nina Smith,

Nina Smith

GoodWeave International, a nonprofit working to end child, forced and...

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Keith McMillen, Bebop Sensors

Keith McMillen
Bebop Sensors

Bebop Sensors' smart fabrics allows for a new level of interaction between ...

Sachin Pendharkar, Dieffenbacher India Pvt Ltd

Sachin Pendharkar
Dieffenbacher India Pvt Ltd

Germany-based Dieffenbacher Group is a producer of high-quality composites ...

Igor Chapurin, Chapurin

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Aneeth Arora, Péro

Aneeth Arora

The Woolmark Company has partnered with handmade fashion label Péro and...

Silvia Venturini Fendi, Fendi s.r.l

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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 2021

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

Advanced Search