MDR rollout will be monitored to protect users

New Delhi: The government would closely monitor the rollout of Merchant Discount Rate (MDR) from October 15 to ensure that merchants do not pass these charges to customers, officials said.

“We are in touch with payment aggregators. The rollout would be closely monitored,” an official said, adding that MDR is necessary to help the fintech ecosystem sustain and grow.

The official said any issue with regard to levy of goods and services tax on MDR can be taken up by the GST Council. He said input tax credit can be used by merchants to offset their tax liability.