Business/Economy

No charges on transactions up to Rs. 2,000

No charges on transactions up to Rs. 2,000

Customers now do not have to pay any transaction charges for payments through any of the modes like the debit card, BHIM app or any other payment made for up to Rs 2,000 from the New Year.

It was in December when Union Cabinet approved an offer that government will bear the Merchant Discount Rate charges on transactions up to Rs 2,000 made through BHIM UPI, debit cards, or Aadhaar-enabled payment systems in order to promote digital transactions.

Rajiv Kumar, Financial Services Secretary, stated via Twitter: "Happy Digital New Year. December Quarter BHIM transaction rises 86% to around 145.6 million with a value of Rs 13,174 crore."

He further added: "Further impulsion to digital payments as the government is set to reimburse charges for transaction up to Rs 2,000 on debit cards and BHIM. Therefore, zero charges on merchants. Go Digital and embrace transparency."

The merchant discount rate from now onwards will be borne by the government for the next two years with effect from January 1 this year by reimbursing the same to all the banks.

This move, decided at the Cabinet meeting which was chaired by Prime Minister Narendra Modi, will make an impact of more than Rs 2,500 crore on the ex-chequer.