Their usage, however, reflects that they are predominantly used at ATMs to withdraw cash and not used at merchant establishments probably due to the lack of depth of penetration of PoS, terminals, especially at smaller merchant locations. This is on account of the fact that the MDRs for debit and credit cards were uniform and acted as a disincentive.
This was somewhat strange given that a debit card is a secured product while a credit card is part of the unsecured credit product portfolio of the banks. To encourage the acceptance of debit cards at smaller  BIS central bankers’ speeches  7  merchant terminals, Reserve Bank has introduced a differential MDR for debit card transactions.