2019
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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0.65%
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0.50%
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0.75%
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0.30%
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Detailed explanation-1: -The merchant discount rate, or MDR, is the rate charged to a merchant for the payment processing of debit and credit card transactions. The service is set up by the merchant, and they must agree or commit to the rate before accepting and/or authorizing debit or credit cards for payment processing.
Detailed explanation-2: -MDR is charged to the merchants for accepting digital payments. While UPI payments are currently exempted from MDR, credit cards attract the highest MDR between 1%-2% of the total transaction amount.
Detailed explanation-3: -For medium and large businesses, the MDR will be 0.8 percent or Rs. 1,000 per transaction, whichever is lower. The government will bear MDR charges on transactions up to Rs. 2,000 made through debit cards, BHIM UPI or Aadhaar-enabled payment systems.
Detailed explanation-4: -7.3. To encourage the use of debit cards and to facilitate acceptance of small value transactions, especially at smaller merchants, RBI had prescribed maximum MDR for debit card transactions w.e.f. September 1, 2012, at 0.75% of transaction value for transactions up to ₹2,000/- and at 1% for those above ₹2,000/-.