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Question

What is the full form of MDR ?

A Market Discount Rate Correct Answer Incorrect Answer
B Market Differential Rate Correct Answer Incorrect Answer
C Merchant Discount Rate Correct Answer Incorrect Answer
D Merchant Differential Rate Correct Answer Incorrect Answer
E None of These Correct Answer Incorrect Answer

Solution

Merchant Discount Rate is a charge or fee imposed on merchants by a bank for accepting payment from their customers in credit and debit cards every time a card is used for payment. According to recent RBI notification, from January 1 2018, small merchants (turnover upto Rs.20 lakh) will pay a maximum MDR of 0.40% of bill value and larger merchants (turnover greater than Rs.20 lakh) will pay 0.90%.

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