The move will encourage the use of debit cards, especially at small merchants or service providers and location by way of lower merchant discount rate
Mumbai: The Reserve Bank of India (RBI) on Thursday lowered the rate of commission that customers pay to merchants at the point of sale for payments made through debit cards to between 0.75% and 1%, reports PTI.
As per the new RBI directive, the commission known as merchant discount rate (MDR), will not be more than 0.75% of transactions of up to Rs2,000. For transactions above Rs2,000, MDR has been capped at 1%, as per the new rules that will be applicable from 1st July.
In a statement, RBI said the MDR for debit and credit cards has been similar in India. While a debit card is used as per the availability of funds, credit card usage is linked to the credit limit sanctioned by the issuer.
"Thus given the different nature of the two products, there is no rationale for having a similar MDR for debit and credit cards. Further, it is observed that debit cards are mostly being used for withdrawal of cash at ATMs," RBI said.
According to a public sector senior bank official, at present both debit and credit cards have the same MDR ranging between 2% and 3%.
RBI further said it was necessary to encourage the use of debit cards, especially at small merchants or service providers and location by way of lower MDR.
"This move would encourage all categories and types of merchants to deploy the card acceptance infrastructure and also facilitate acceptance of small value transactions," it said.
The MDR paid by customers for making payment through credit or debit card is shared between the merchant and the bank, the official said.
"The lowering of MDR for debit cards will encourage customers towards making most of their payments via debit card as they will now have to pay less commission", the bank official said.
‘m-Invest’ enables investors who have a registered folio and mobile number with DSP BlackRock Mutual Fund to invest conveniently, using their mobile phone
Mumbai: DSP BlackRock Investment Managers Pvt Ltd has launched 'm-Invest', a facility through which investors can simply send an SMS or make a phone call to purchase or redeem their investments.
'm-Invest' enables investors who have a registered folio and mobile number with DSP BlackRock Mutual Fund to invest conveniently, using their mobile phone.
All they need to do is to register for m-Invest using the Registration-cum-Debit Mandate Form.
After receiving the m-Invest registration confirmation from the AMC, investors can send an SMS to 567672855 or call on 1800 200 4499 (toll-free number) and specify the amount of purchase/redemption.
This amount will be directly transferred from/ into the registered bank account into/from the specified scheme.
The facility will become available from 1 July 2012 for individuals within the country. The AMC plans to extend this facility to other categories of investors such as sole proprietors, NRIs, non-individuals, among others at a later stage.
The German bank has hiked its deposit rates for domestic and NRE depositors in the range of 1.10%-1.40 % for various tenors
Deutsche Bank today hiked its deposit rates for domestic and NRE depositors in the range of 1.10%-1.40 % for various tenors, reports PTI.
For domestic depositors, the German bank will now give 9.25% interest for two to three year tenor deposits against earlier 8%, Deutsche Bank India said in a release here.
Similarly, the bank has increased deposit rates to 9.5% for three to five years tenor for domestic deposits too.
The bank will increase deposit rates in the range of 1.10%-1.40% for various tenors falling in the two to five year period in NRE accounts.