Indian Government Will Bear Merchant Charges On Debit Cards To Promote Digital Transactions
Indian government is trying to encourage small shopkeepers to accept electronic payments, by bearing the merchant charges, that one needs to pay to the banks, on purchases of up to Rs 2,000 starting January 1, 2018.
The subsidy will be provided to the small shop owners who now need to pay a fees to the banks for transactions through Debit cards, BHIM or Aadhaar. In India, where the average debit transaction value is just Rs 1,500, accepting debit cards for payments will become as cheap as accepting cards for small merchants.
This news was announced by IT minister Ravi Shankar Prasad, saying that government is implementing measures to accelerate digital payments in the country. Also a committee of secretaries has been set-up to ensure that no misuse of subsidy occurs and that benefits...
