The Reserve Bank of India (RBI) on July 4, 2012 said that the reduction in the merchant discount rate (MDR) for the purchases made by debit card payment to 0.75 to 1 percent, will now be applicable from September 1. It was earlier supposed to be due from July 1, 2012 and has been delayed due to some operational issues.

The MDR is usually charged by the RBI from a businessman, who accepts payment through debit or credit cards from their customers. At present it stands at 2-3 percent. RBI in a notification said that it has been requested to grant time for effecting these changes.