MDR subsidised by Govt. on transactions below Rs.20,000

The fees received by banks when the transaction below or equal to Rs. 20,000 is done by debit cards has been reduced to 0.40% by Union Government. The MDR was set by the RBI starting at 0.90% but it has now been formulated 0.40% by Union Government. This new rates will be formulated from the first quarter of 2018. The merchants will become at par with cash transactions now.