More Stories

Informist, Wednesday, Aug. 19, 2026

NEW DELHI – The Merchant Discount Rate on Unified Payments Interface transactions will definitely come into effect, Reserve Bank of India Deputy Governor Shirish Chandra Murmu said Wednesday. The National Payments Corporation of India will make the announcement for the quantum of fees to be levied on the merchants, Murmu said at CNBC-TV18 banking summit in Mumbai.

"I will not hazard a guess but it will come definitely now that what we hear," Murmu said on being asked about the details on rollout of Merchant Discount Rate. "The government, RBI, and NPCI have been discussing (on the matter)," the deputy governor said adding that the finer details on its implementation "have to be worked out".

The Merchant Discount Rate, popularly called MDR, is a fee a merchant pays to a bank for processing digital payments through credit cards, debit cards, or unified payment interfaces. The government had made such payments free from January 2020 to boost digital adoption. Earlier this month, the Parliament passed a bill allowing the government to restore Merchant Discount Rate on digital transactions.

Speaking on deposit growth, Murmu said, "I do not think any banker is worried about deposit growth...because that is where they start with their banking." Bankers are "very comfortable with any sort of challenge when it comes to deposits" and they are "very capable of responding" if needed, he said. According to the latest data, banks' deposits as on Jul. 31 totalled INR 269.41 trillion, up 15.4% on year. 

The RBI is working towards reducing frictions and bringing more operational flexibility for Indian banks, the deputy governor said. "Ultimately, these are the commercial decision – how you raise deposits, how you price deposits. I think bankers are well placed to meet that kind of challenge (of widened gap between deposits and loans)," Murmu said. Credit growth for Indian banks till Jul. 31 was up 19.3% to INR 220.78 trillion.

On the early closure of the foreign currency non-resident bank deposit scheme, Murmu said, "There's nothing early or late. We have to be able to respond to the situation." 

"Things are very dynamic... what holds today maybe it may not be true tomorrow. Even seven-eight days is a long period, given the kind of uncertainty around us," he added. On Friday, the central bank announced that their swap facility for FCNR(B) will be available for deposits mobilised till Aug. 31, against the previous deadline of Sept. 30. The RBI has attracted $52.30 billion inflows under the FCNR(B) deposit scheme till Aug. 11, based on data from authorised dealer banks, which include foreign banks.  End

US$1 = INR 95.75

Reported by Shweta

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.