MDR is the rate that banks levy from merchants for the provision of debit and credit card services when payment is made at a merchant point of sale (PoS).
Part of the government's push towards a cashless economy, the e-payment medium has been billed as the world's first interoperable payment acceptance solution.
The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the withdrawal of surcharge, service charge and convenience fee imposed by different government departments and organizations on card and digital payments.