No charges on digital payments

Now Digital Transaction will not charge merchant discount rates (MDR). If the MDR charge is deducted on any transaction after January 1, 2020, banks will also refund it to customers. On Sunday, the Central Board of Direct Taxes (CBDT) has instructed banks in this regard. The Central Government had issued a circular in December last year, stating that from January 1, 2020, no other charge including MDR will be charged on payment through electronic mode. Actually, the government has taken this decision to promote digital transactions in the country.

The directive issued by CBDT said that some banks are charging some charges on payment through UPI (Unified Payment Interface). In this, customers are being charged after the transaction of a fixed limit. In doing so, banks are violating the rules and for this necessary action can be taken.

CBDT has issued Circular no. 16/2020 on 30th August, 2020 advising banks to immediately refund the charges collected, if any, on or after 1st January, 2020 on transactions carried out using the electronic modes prescribed under section 269SU of the Income-tax Act,1961.(1/2) pic.twitter.com/Dw0D5oVi8T

— Income Tax India (@IncomeTaxIndia) August 30, 2020