Question : Digital Payments

Will the Minister of ELECTRONICS & INFORMATION TECHNOLOGY be pleased to state: -

(a) whether the efforts of the Union Government to promote digital payments have received a set back since the banks as well as the firms that installed the swipe device have started card transaction charges;
(b) if so, the details thereof and the reaction of the Government in this regard;
(c) whether any survey have been conducted by the Government regarding percentage of population who expressed satisfaction over the mode of digital payments particularly in rural areas; and
(d) if so, the details thereof?

(a) and (b): The Merchant Discount Rate (MDR) is a fee levied by banks on merchants acquired by them. It is not a charge on the card-holders /customers. Reserve Bank of India (RBI) has prescribed a ceiling on MDR transactions which are not to be passed on to the customers. The following data shows the details of usage of Credit & Debit Cards at POS.

Credit & Debit Cards usage at POS
Period Volume (Million) Value (INR Billion)
October, 2016 229.45 518.83
November, 2016 332.39 579.09
December, 2016 531.54 891.8
January, 2017 441.42 817.12
February, 2017 346.41 645.47
March, 2017 378.78 690.89
April, 2017 374.58 706.25
May, 2017 382.84 736.49

From the above data it is apparent that the value & volume of digital transactions increased during November - December 2016 and have thereafter plateaued.

(c) and (d): No, Madam.

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