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.

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