Finance Minister Nirmala Sitharaman on Friday told a representation of digital payment industry executives the government would neither amend nor withdraw the zero merchant discount rate (MDR) policy, nor compensate these companies on losses due to the waiving off the transactional charges in the upcoming budget.
However, the FM assured the delegation, which included Paytm CEO Vijay Shekhar Sharma and PhonePe Founder Sameer Nigam, that the banks would be mandated to continue their investment in acquiring merchants through payment service providers (PSPs) from the capital they save up on account of handling less cash.
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The six-member delegation was led by Payment Council of India (PCI) chairman Vishwas Patel and included Ajay Kaushal, director of Billdesk; Loney Antony, vice-chairman, Hitachi Payments; and Gaurav Chopra, the executive director of PCI.
The meeting was also attended by two senior government secretaries.
Source: Economic Times