State Bank of India said on Thursday it has waived merchant discount rate (MDR) on Master and Visa debit cards, having already done so on RuPay debit cards last week to promote digital payments. "With a view to encouraging the usage further, SBI will waive MDR on Master and Visa debit cards also with immediate effect up to December 31, 2016," Chairman Arundhati Bhattacharya said in a statement.
The move follows government's directive on Wednesday asking banks to facilitate digital transactions by waiving the MDR fee as Rs 500 and Rs 1,000 notes no longer remain a legal tender in an economy that is largely driven by cash dealings. The country's largest lender SBI said it has been taking all steps to reduce transitory inconvenience to its customers as also the public consequent on withdrawal of these notes from November 9.
SBI is offering convenient electronic and digital payment solutions to its customers through debit cards, pre-paid card, State Bank Buddy, Mingle, as well as internet and mobile banking services. It has also strengthened its acquiring infrastructure to ensure seamless transactions, as also to supplement cash dispensation to customers through its innovative solutions like Cash@PoS, SBI said.
