A lower MDR is expected to act as an incentive to even the smaller merchants to accept card payments as the fee payable by them to the acquiring bank would be relatively small. As the policy measure has been recently unveiled, the Reserve Bank is keenly watching the market for further developments.
Rationalisation of PPI guidelines To provide a boost to cash-less transactions and bolster the issuance of semi-closed PPIs, the five categories of semi-closed PPIs have been replaced with three broad categories. The first category of instruments up to ₹ can be issued in electronic form with minimum details of the customer.