Banks have made a fresh appeal to the government to reinstate merchant discounts on RuPay cards in a bid to boost its popularity and usage among traders and create a level playing field with international competitors.
The appeal comes as RuPay cards have been lagging behind Visa and Mastercard, primarily due to the absence of the Merchant Discount Rate (MDR).
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The absence of MDR has limited the growth and attractiveness of RuPay cards in the market, as it hampers the ability to offer rewards, loyalty programs, and competitive features that are available with Visa and Mastercard.
MDR is a fee charged to merchants for accepting card payments. Its restoration on RuPay cards is crucial as it would encourage banks to promote RuPay as a preferred payment option and enable them to generate additional funds.
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Furthermore, payment service providers would also benefit from the reinstatement of MDR, allowing for increased revenue streams and investment in innovative payment solutions.
By restoring MDR on RuPay cards, the government can foster an environment where RuPay becomes a more attractive and widely accepted payment method.
