Digital payments get a boost: Oilcos to bear MDR on fuel buying 

The impasse over the payment of merchant discount rate (MDR) charges on fuel purchases via debit cards seems to have reached a conclusion with oil retailing companies - Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp - agreeing to pay the charges, at least until.The impasse over the payment of merchant discount rate (MDR) charges on fuel purchases via debit cards seems to have reached a conclusion with oil retailing companies - Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp - agreeing to pay the charges, reports the Mint today. The move will excuse the buyer, who currently pays the fee, and the fuel dealer from making payment. MDR, a fee charged by the bank, is currently applicable at 1 percent on credit card and 0.25-1 percent on debit card use via swipe machines. The government had waived MDR at fuel stations till December 31 to encourage cashless transactions after it kicked off the demonetisation exercise, which had led to a sudden shortage of high-denomination notes. However, as the temporary waiver ended in January and banks raised demand for reimplementation of MDR.

All India Petroleum Dealers’ Association and Consortium of India Petroleum Dealers declined to pay threatening card transactions will be discontinued. For oil marketing companies, that plan to bear the charges only up to March 31 as per the Reserve Bank of India directives, the MDR is in addition to a 0.75 percent discount on card and wallet payments on auto fuel purchases. OMCs do not see the discount period getting extended as demonetisation impact has eased, and are yet to decide whether to approach the government seeking compensation for the revenue losses due to discounts. OMCs had told Mint in December that the discounts could cause a revenue hit of roughly Rs 1,100 crore till March. The oil marketing business, including fuel retailing, forms 18 percent of volumes for Indian Oil and 40-50 percent for Bharat Petroleum and Hindustan Petroleum. 

While diesel forms 70 percent of sales to the commercial segment, petrol is largely sold to retail customers. Tags MDR debit cards oil retailing demonetisation You Might Also Like Loafer Styling Tips You Need To Know! Check Exclusively On abof! ABOF Loafer Styling Tips You Need To Know! Check Exclusively On abof! Woman Goes Missing From Disney Cruise. But 6 Years Later, Police Uncover Truth. LifeDaily Woman Goes Missing From Disney Cruise. But 6 Years Later, Police Uncover Truth. Better hair at every age Combat all hair problems Skin and Hair Academy Better hair at every age Combat all hair problems Here Are the 25 Wealthiest College Basketball Teams college-sports.point after.com Here Are the 25 Wealthiest College Basketball Teams Recommended by Buy, Hold, Sell ? Hear it first on M3 Digital payments get a boost: Oilcos to bear MDR on fuel buying See all news Most Popular Top News Cipla to sell animal health biz soon;focus on China, Brazil mkts Bull's Eye: Buy Bajaj Auto, PNB, Ceat, Adani Power, Sun TV Ola raises $350 million at valuation of $3.5 billion Jio effect: Airtel may let customers enjoy free domestic roaming See all Video of the day Error loading player: No playable sources found Risk reward may be against the market: Udayan Mukherjee You Might Also Like Modern Traders Are Opting For Trade Finance. Are You? Modern Traders Are Opting For Trade Finance. 

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