In order to promote cash-less economy, the government will bear the transaction cost for all payments made to it through debit or credit cards and net banking.
At present, customers bear the transaction cost commonly known as merchant discount rate (MDR) on payments made to the government.
Government departments shall take appropriate steps to bear MDR cost like other merchants.
The public shall not bear any MDR cost for making payment to government through debit cards or credit cards or digital means.
The Finance Ministry has issued the circular in pursuance of the decision of the government to promote credit/digital transactions in government payments and collections.
Earlier the government had set up a task force under Department of Investment and Public Asset Management (DIPAM) Secretary Neeraj Gupta.
The Task Force on promotion of payments through cards and digital means has flagged issues with respective government departments.
From India, Ahmadabad
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