Digital Push: SBI says no MDR charges for small merchants with turnover of Rs 20 lakh
State Bank of India (SBI) on Monday decided to waive Merchant Discount Rates (MDR) charges on debit card transactions for all small merchant holding annual turnover up to Rs 20 lakh up to December 31, 2017.
SBI said, "With a view to help the Small Merchants overcome the apprehensions towards joining this journey by installation of PoS terminals in their shops, State Bank of India has decided to waive completely, the MDR charges on debit card transactions for all small merchants having annual turnover of up to Rs 20 lakh, for a period of one year i.e. up to 31-12-2017."
As per SBI, small merchants are not always able to realise or perceive the benefits and consider MDR charges a drain on their profitability.
The bank has been deploying terminals in various region of India, especially the smaller towns, semi urban and rural areas.
Nearly 70% of its point of sale (PoS) terminals are deployed in non-metro centres, which can be found in more than 4,400 centres.
SBI said, "The move is targeted primarily towards a segment of population and small merchants, who have not yet experienced the convenience of Card Payments."