45
Payments Regulation in Asia
rupees was enacted for 1 year between January 1st and December 31st, 2017. 107 These rates were then replaced with small merchant and large merchant rates currently in place.
The available options for digital payment methods at lower costs has driven down the MDRs of credit card transactions in India to around 1.1% to remain competitive as a payment method with a potential credit card MDR cap being considered by the RBI. 108 109 Finally, the Indian Government has budgeted 15 billion rupees in 2021-2022 fiscal year towards reimbursement of charges for RuPay debit cards and UPI transactions. 110 Similar financial support has been announced for the 2022-2023 fiscal year. 111 Moreover, the Indian government issued a statement announcing reimbursement of charges to banks for all debit card, BHIM UPI, and Aadhaar Pay transaction up to 2000 rupees during calendar years 2018 and 2019 to ensure merchants were not mischarged for accepting small value payments. 112
107
Ibid
108 https://www.paymeindia.in/blog/understanding-interchange-fees-and-their-impact-on-users-and-econo- my/#what-are-interchange-fees 109 https://www.paymeindia.in/blog/understanding-interchange-fees-and-their-impact-on-users-and-econo- my/#what-are-interchange-fees 110 https://www.rbi.org.in/Scripts/PublicationsView.aspx?id=21082#7 111 Ibid 112 Ibid
Powered by FlippingBook