Q. With reference to Merchant Discount Rate (MDR), consider the following statements:
1. It is the cost paid by a bank to merchant for accepting payment from their customers via digital means.
2. The government abolished the MDR on transactions on RuPay debit cards.
Which of the statements given above is/are correct?
Answer: B
Notes:
Statement 1 is incorrect: It is the cost paid by a merchant to a bank for accepting payment from their customers via digital means. The merchant discount rate is expressed in percentage of the transaction amount.
Statement 2 is correct. The government had abolished the merchant discount rate (MDR) on transactions using the RuPay debit card and the UPI from January 1, 2020.
