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Master Circular- Capital Adequacy Standards and Risk Management Guidelines for standalone Primary Dealers
July, 04th 2012

RBI/2012-13/110
DPSS.CO.PD.No. 27/02.14.003 /2012-13

July 04, 2012

The Chairman and Managing Director / Chief Executive Officer
All Scheduled Commercial Banks including RRBs /
Urban Co-operative Banks / State Co-operative Banks /
District Central Co-operative Banks / Authorised Card Payment Networks

Madam / Dear Sir,

Merchant Discount Rates (MDR) structure for debit card transactions

Please refer to our circular DPSS.CO.PD.No. 2361 / 02.14.003 / 2011-12 dated June 28, 2012 on the subject. We have received several representations from banks and system providers that implementation of the directive needs to be preceded by modifications in the computer systems and agreements with merchants. Accordingly, RBI has been requested to grant time for effecting these changes.

2. In view of the operational difficulties as above, it has been decided to allow extension of time till end of August 2012 to comply with the directions on merchant discount rates.

3. Accordingly, the scheme will become operational from 1st September 2012.

4. This directive is issued under Section 18 of the Payment and Settlement Systems Act, 2007 (Act 51 of 2007).

5. Please acknowledge receipt and ensure compliance.

Yours faithfully

(G. Srinivas)
General Manager

 
 
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