RBI/2016-17/228
DGBA.GAD.No.2128/44.02.001/2016-17
February
16, 2017
All Agency Banks
Dear Sir,
Reimbursement of Merchant
Discount Rate
The Government of India (GoI)
has decided to absorb the Merchant Discount Rate (MDR) charges in respect
of debit card transactions while making payments to GoI. The Office
Memoranda issued by the Office of Controller General of Accounts dated December 14 and 15, 2016 and Central Board
of Direct Taxes dated January
30, 2017 in this regard are enclosed. Agency banks may also be
guided by the extant RBI Circulars regarding the applicable MDR rates.
2. In order to operationalise
the above, RBI will reimburse banks the MDR on debit cards used for payment
of tax and non-tax dues to the Government of India with effect from January
1, 2017. Agency banks are advised to forward their claim for reimbursement
of MDR along with statutory auditor’s certificate, as in the case of agency
commission claims, to our CAS Nagpur on a quarterly basis. The claims may
be signed by the Officer-in-Charge of the Government Banking Division of
the bank. He should also certify that MDR charges for transaction amounts
upto ? 1.00 lakh have not been collected from the payer. The first such
claim may be made by April 30, 2017 for the quarter ending March 31, 2017.
Yours faithfully,
(Partha Choudhuri)
General Manager
Encl: Five
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