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    No charges on digital payments made to large biz establishments from Nov 1

    Synopsis

    FM Nirmala Sitharaman had said business establishments with annual turnover of more than 50 crore should offer low cost digital modes of payment to their customers and the RBI and banks should absorb cost of transactions.

    PTI
    The government on Friday said banks or system providers will not impose charges or Merchant Discount Rate on customers as well as merchants on digital payments made to establishments having turnover in excess of Rs 50 crore from November 1.

    In her Budget speech, Finance Minister Nirmala Sitharaman had said business establishments with annual turnover of more than 50 crore should offer low cost digital modes of payment to their customers and the RBI and banks should absorb cost of transactions.

    Following the announcement, amendments have been made in the income tax act as well as in the Payment and Settlement Systems Act 2007.

    The new provisions "shall come into force with effect from November 1, 2019," the Central Board of Direct Taxes (CBDT) said in a circular.

    The CBDT has also invited applications from banks and payment system providers who are willing that their payment systems may be used for the purpose as the government plans to prescribe certain electronic modes of payment.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

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    10 Comments on this Story

    Veeraswamy Amara262 days ago
    its really a welcome decision and win win for all.
    Shashidhar Singh266 days ago
    More pressure on Judges .Vacancy and less number of Judges .Lack of expert staff and infrastructure in the court .Single judges are in -charge of more and court .Rich and influential person get judgement soonly by their expertise etc and many more
    Srinivasan Vedantam267 days ago
    No MDR charges to be levied if at all government wants to promote digitization or to the maximum only service charges of Rs 20 or 25 for making the industry sustainable
    The Economic Times