Country’s largest lender SBI has waived MDR - Merchant Discount Rate on debit card transactions for all small merchants with annual turnover of up to Rs 20 lac for one year. This, SBI said, had been done with a view to aiding small merchants overcome apprehensions towards joining the journey by installation of PoS terminals in their shops. SBI further said that the move was targeted primarily towards a segment of population and small merchants, who had not yet experienced the convenience of Card Payments. Meanwhile, SBI share price was trading the positive zone on the National Stock Exchange (NSE) today.
While affirming its commitment to promoting the government’s digital initiative the state-owned bank said that by actively canvassing the smaller merchants, the Bank was trying to live up to its motto of being a banker to every Indian.
To build up the PoS acceptance infrastructure across the nation, especially in areas which hitherto had low digital penetration, State Bank of India (SBI) had been deploying terminals in smaller towns, semi-urban and rural areas since the beginning.
SBI said that close to 70 per cent of its PoS terminals were deployed in non-metro centres, and these could be found in more than 4,400 centres. It also said that going digital brought a lot of benefits not only to the nation’s economy, but also to merchants, in particular, by way of risen customer engagement and analytics, Management information system (MIS), ease in account-keeping, auditing, and handling of cash.
However, small merchants sometimes are not able to realize or perceive the benefits, and consider MDR charges a drain on their profitability, it further said.
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