New debit card charges may push retailers back to cash transactions
Regulator rationalises card transaction feeNew debit card charges may prompt retailers to push for cash transactionsRBI caps charges on debit card transactions at Rs 200 for small merchantsPay via debit card: Govt wants RBI to cap MDR on digital payments at Rs 200RBI to stay on status quo for the rest of 2017: Here’s what experts say
Increased debit card fee may push retailers towards cash transactions as the charges are quite high, said retailers.
The Reserve Bank of India has revised merchant discount rate (MDR) from January next year. MDR will be 0.4 per cent of the purchase value or Rs 200, whichever is lower for shops generating revenue up to Rs 20 lakh. For stores above that bracket, MDR will be at 0.9 per cent or Rs 1,000, whichever is lower. Currently, MDR is 0.25 per cent for purchases below Rs 1,000 and 0.5 per cent for those between Rs 1,000 and Rs 2,000.
“Any merchant whose turnover is more than Rs 20 lakh will be impacted. Most of the kirana shops have a turnover of more than Rs 20 lakh and keep margins of 3 to 4 per cent. Why would they pay 0.9 per cent as debit card charges. Obviously they will push customers for cash transactions,” said Kumar Rajagopalan, chief executive at Retailers Association of India.
“Every merchant, will be impacted,” he said. Even big retailers are protesting against the change. A senior executive at Future Retail said they would install ATMs at stores to allow customers to withdraw money and do cash transactions.” “The charges are quite heavy. We can not bear it and take a hit on our margins. Passing it to customers will also become a challenge,” said the executive.
Income tax return forms for FY 2017-18 releasedIncome tax return forms for FY 2017-18 released
CBDT notified the ITR or Income Tax Return Forms AY 2018-19 (FY 2017-18). There areRead More
Here’s how you can avail tax benefit on education loanHere’s how you can avail tax benefit on education loan
Among many categories of debt, education loan is one of them which helps students toRead More