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Policy and regulations

‘You are helping the rich get richer’: The MDR waiver has a chilling message for card swipes

The Budget’s digital-payments push is aimed at a merchant category that’s already big on cashless transactions and leaves out businesses that need more prodding for going online. The move will also make new-age fintech players walk on thin ice.
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artisingh
24 Jul 2019 12 Mins Read 0 comment
People in Kolkata watch the Union Budget speech delivered by finance minister Nirmala Sitharaman. Getty Images
People in Kolkata watch the Union Budget speech delivered by finance minister Nirmala Sitharaman.
“We really want to know who is advising the government on this.” A senior official at a Mumbai-based bank immediately vented his ire when reached for a post-Budget comment on the merchant discount rate or MDR being waived off for a certain category of businesses. MDR is a fee paid by the merchant on every digital transaction. Two
MDR, the Aditya Birla Payments Bank, which just shut shop due to myopic policy, will remain a sore reminder. The payments industry, which has already faced multiple policy tweaks over the last two-three years, too, is walking on thin ice. Only a steady policy regime can save it from a precipitous fall. ( Graphics by Sadhana Saxena)
“We really want to know who is advising the government on this.” A senior official at a Mumbai-based bank immediately vented his ire when reached for a post-Budget comment on the merchant discount rate or MDR being waived off for a certain category of businesses. MDR is a fee paid by the merchant on every digital transaction. Two MDR, the Aditya Birla Payments Bank, which just shut shop due to myopic policy, will remain a sore reminder. The payments industry, which has already faced multiple policy tweaks over the last two-three years, too, is walking on thin ice. Only a steady policy regime can save it from a precipitous fall. ( Graphics by Sadhana Saxena)

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