For digital payments to grow, India needed to reward innovation and risk-taking abilities, they say.
The new norms not only adds flexibility and control but also creates scope for innovation.
It is hoped that the requests of the NPCI, IBA, PCI and the like will bear fruit, however indications so far are that zero MDR is here to stay.
With banks forced to bear processing charges on RuPay cards, they were more likely to issue Mastercard and Visa cards
Non-complaint businesses would face a daily penalty of Rs 5,000.
"None of the banks have reimbursed for transactions processed from 1st January 2018 till date," PCI chairman Vishwas Patel said in a statement.
MDR is charged on payments made to merchants through BHIM UPI platform and AePS (Aadhaar enabled Payment System).
Such companies feel the central bank's draft proposal seeking changes to the fee regime on debit cards will kill innovation in the payments business.
The impasse over the payment of merchant discount rate (MDR) charges on fuel purchases via debit cards seems to have reached a conclusion with oil retailing companies - Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp - agreeing to pay the charges, at least until March 31, reports the Mint today.
This is to help the small merchants overcome the apprehensions towards joining this journey by installation of Point of Sale (PoS) terminals in their shops.
Credit and debit cards will continue to be accepted at petrol pumps even after January 13 without customers having to pay transaction charges, the government said today.
The spat between banks and petrol pumps is likely to blow a hole in Prime Minister Modi‘s digital India dreams. While petrol pumps pan-India have for now deferred their decision to decline debit and credit card payments for fuel sales until January 13, the matter might raise its ugly head again soon.
To promote cash-less transactions, the government had waived the Merchant Discount Rate (MDR) on fuel purchase post demonetisation for consumers. But after the expiry of the 50-day window, the banks have decided to levy MDR on petrol pump owners.
"The MDR charges waiver has been extended till January 7 and the review would be done after that," Citi India spokesperson said.
Country's largest private sector lender ICICI Bank announced waiving the MDR on debit card transactions at all merchants serviced by its merchant acquiring arm ICICI Merchant Services IMSL.
Private sector lenders ICICI Bank, Axis Bank and Yes Bank joined their public sector peers to waive the merchant discount rate (MDR) levied on merchants while accepting digital debit card payments from customers.