No Service Charge For Digital Transaction Upto Rs.2000
It’s worth appreciable for the Union Cabinet action announced on last Friday, 14th of Dec regarding MDR reimbursement upto Rs.2000. From the date of demonetisation came into practice, still there exist dilemma in using digital transactions even though it provided a monetary benefit of 2.18 lakh Cr to the country. At this point of time, it was a perfect pitch by IT and Law minister Ravi Shanker Prasad in order to accelerate digital payments in India.
One of the biggest challenge for the adaption of swiping machines among the retailers is the service charge from the bank. For every transactions the bank will charge around 2% as their commission. Now the Government will reimburse MDR (Merchant Discount Rate) for transactions upto Rs.2000 which will be effected from January 1,2018. This is applicable for all debit cards, BHIM UPI and AePS (Adhar enabled Payment System). Time span provided for this new mode of action is 2 years.
Definitely it can be a boost to digital payment modes since both customer and merchant get benefited because of this. Just by a few clicks from anywhere, at any point of time, anybody can make a financial transaction. It’s just the matter of confusion to get into a new mode which is totally different from old practices. But human have a tendency to get adapted to technology since they prefer fast responses. It clearly reflected in 58% increase of e-payment system from last November onwards.
Most of the people prefer cash transactions in order to avoid additional percentage of amount incurred while purchasing. As a person, till this date, I prefered such a mode since I don’t have to pay anything extra apart from MRP. Since many of the retail outlets didn’t accept the cards in lower tier cities, it was a big challenge to travel without the paper cash. This new offer can exactly be termed as a New Year gift for a normal Indian citizen. There won’t be a need to hold much cash on hand, just need to keep a card. That’s also a benefit. Thus people will automatically switch on to cards for normal transactions. People with multiple cards can also enjoy additional benefit. So by analyzing all these, it can be called as a brilliant plan for motivating digital or e-payment system.
Let’s move on to faceless- paperless-cashless system!!!
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