Latest news with #MerchantDiscountRate
The Star
3 days ago
- Business
- The Star
Delay RON95 subsidy rationalisation until two issues ironed out, petrol dealers urge govt
PETALING JAYA: Delay the implementation of the RON95 targeted petrol subsidies until two core issues affecting petrol dealers are resolved, says the Petroleum Dealers Association of Malaysia (PDAM). Its president Datuk Khairul Annuar Abdul Aziz said that it was crucial that the issues be addressed as the rollout of the RON95 rationalisation plan would impact petrol dealers, particularly the small and medium operators. The two issues, he said, were the margins related to the Automatic Pricing Mechanism (APM) and Merchant Discount Rate (MDR). "The fixed dealer margin, unchanged since 2019, no longer reflects current operating costs. "Without a margin revision, small and medium-volume station operators will face losses from the very first day of the RON95 subsidy rationalisation implementation," he said in a statement on Tuesday (June 3). He added that the MDR charges are calculated as a percentage of the sale price, while dealers' commissions are based on litres sold. "As pump prices increase under RON95 subsidy rationalisation, MDR rises accordingly, but dealer commissions remain static, resulting in further erosion of margins," he said. Khairul noted that despite multiple requests over the past two years by PDAM for a meeting with Prime Minister Datuk Seri Anwar Ibrahim, no meeting had been forthcoming. "We believe that only through direct leadership from the Prime Minister, can a sustainable and balanced resolution be achieved. "One that ensures the continuity of local dealer operations and the security of fuel supply to the public," he said. He added that a nationwide petition initiated by PDAM to seek help in resolving the two issues had garnered over 2,300 verified signatures, representing more than 60% of petrol stations nationwide which includes 70% of major branded stations such as Petronas, Shell, Petron, Caltex and BHPetrol. PDAM represents some 4,000 petrol stations nationwide and is the umbrella association representing eight petrol dealers associations in the country.
The Print
27-05-2025
- Business
- The Print
Naidu asks ally BJP to ban Rs 500 notes, advocates for politics ‘without distribution of money'
Naidu, an NDA partner even at the time, headed a committee of chief ministers, experts and other stakeholders formed by the Centre, under the NITI Aayog aegis, to come up with an action plan for the country's quick transition to a currency-less economy. Delivering his inaugural speech Tuesday at Telugu Desam Party (TDP) Mahanadu , the party's annual three-day mega convention, at Kadapa, Naidu said that after demonetization of Rs 500 and Rs 1000 notes in 2016 he had suggested to Prime Minister Narendra Modi to introduce digital currency in the country. Hyderabad: Andhra Pradesh Chief Minister Chandrababu Naidu has advocated abolition of higher-denomination currency notes currently in circulation, as well as full adoption of digital currency in what he prescribed as the silver bullet to curb corruption in all walks of life, mainly politics. 'After submitting our report, I requested the PM that the Rs 2,000 notes introduced later, along with Rs 500 etc. big notes should be banned, and digital currency should be introduced which will help trace illegal transactions and catch the corrupt easily,' Naidu said. Stating that true public service requires clean governance, he stressed banning higher-denomination notes as the only way to eliminate corruption. 'Today from this platform, I am reiterating the demand. We have the digital currency facility now, so no need for Rs 500, 1000, 2000-like notes anymore. Politics should not involve distribution of currency notes,' Naidu said, asking his party workers to clap, cheer in support of his demand—if they agreed with him. Satisfied with the response, Naidu declared, 'then only can we root out corruption from our country. We will work on this.' Acknowledging how everyone now-a-days has become tech savvy, the TDP supremo said all donations to the party can now be made directly, digitally through phone-based bank transfers. Naidu has been demanding abolition of higher-currency notes alongside faster transition to digital payments for some time now. In January 2017, the panel headed by him submitted its interim report, reportedly endorsing abolition of the Merchant Discount Rate (MDR) charges to incentivise digital transactions, suggesting curbs on large transactions and levy of banking cash transaction tax on Rs 50,000 and above, among other such recommendations. 'I was the first to demand abolition of Rs 1,000 and Rs 500 notes. Now Rs 2,000 and Rs 500 notes are brought in but they too should be scrapped,' Naidu said in May 2017 in the light of a hawala racket busted by Visakhapatnam police then. Later, in 2017, Naidu said the Reserve Bank of India (RBI) was 'spending huge sums on printing physical currency, transporting and securing it'. Speaking at an event, he also complained that the central bank was replacing old notes with newer ones in spite of greater emphasis sought to be laid on digital payments after demonetisation. Naidu parted ways with the NDA in March 2018. The RBI announced withdrawal of the Rs 2000 notes in May, 2023. In his Mahanadu speech, Naidu claimed TDP has been 'uncompromising in its fight against corruption'. 'The belief that people ignore political corruption is a myth. TDP has waged a tireless, apolitical battle against corruption for four decades, from the 1984 Democracy Protection Movement to challenging recent regimes. In the united state, TDP exposed scams worth lakhs of crores and was vindicated by agencies like the CBI,' Naidu said, in apparent reference to the disproportionate assets case against YSRCP chief Jagan Mohan Reddy. He added, 'That is our credibility. We fought corruption with facts—from Outer Ring Road and VANPIC scams to Obulapuram illegal mining. The movement we launched against illegal mining in Obulapuram once created a nationwide stir. Today, after a decade, courts have confirmed the irregularities and delivered convictions. The results of our relentless struggle are now visible to the entire nation,' said Naidu. In May first week, a Central Bureau of Investigation (CBI) court at Hyderabad gave a seven-year imprisonment sentence to four accused, including Karnataka BJP MLA Gali Janardan Reddy, in the case of illegal mining in Anantapuram district by Obulapuram Mining Corporation (OMC). The case was registered by the central probe agency around 16 years back. He also said his party has been instrumental in shaping national policy. With TDP's 16 Lok Sabha MPs, Naidu's support is crucial for NDA. 'The phrase, 'What Andhra thinks today, India thinks tomorrow' has been proven many times. We introduced power reforms, public-private partnerships, and administrative accountability—pioneering governance models in India,' he said. Adding, 'TDP is one of the most institutionally strong parties in the country. As a regional party, it is the only one to achieve 1 crore memberships in 45 days.' (Edited by Amrtansh Arora) Also Read: NITI Aayog meet: Naidu vision plan for AP & India focuses on demographic dividend, leveraging AI
Mint
30-04-2025
- Business
- Mint
RBI, NPCI, finance ministry keen to charge merchants fees to bolster homegrown payments network
Mumbai/New Delhi:India's payments authority, the central bank, and industry are pushing the government to allow a fee on digital payments to large merchants made via its homegrown network to help boost growth, five sources told Reuters. The charge, known as Merchant Discount Rate (MDR), is considered crucial to boosting investment for payments firms, and reviving slowing growth in payments made via the Unified Payments Interface (UPI), India's own network, the sources said. A rate of between 0.2% to 0.3% of the value of each transaction has been suggested, the sources said, which would still be lower than the charges attached to credit and debit card payments. The MDR is usually borne by the merchants, an industry executive said, so will not be passed on to customers. Two of the sources said a final decision on the fee would be made by Prime Minister Narendra Modi's office, but the federal finance ministry supports its implementation. All the sources requested anonymity because the discussions are private. The Prime Minister's office, the Reserve Bank of India, the finance ministry and the National Payments Corporation of India (NPCI) did not immediately respond to emails seeking comment. Modi has sought to reduce the use of cash locally to encourage transparency and formalisation of the economy, including through a controversial 2016 decision to demonetise large value notes. That and the COVID-19 pandemic both helped increase the popularity of digital payments in India. Over the last five years, the average monthly volume of UPI transactions has jumped from about 1.6 billion to over 17 billion currently, according to NPCI data. Last month, Indians made payments worth 24.7 trillion rupees ($289.65 billion) through the UPI network in March, more than a quarter of which went to merchants. But the growth rate of UPI payments has slowed, with the value of monthly transactions growing by an average of about 25% in 2025, down from 35% last year. Walmart-backed PhonePe and Alphabet's GooglePay currently dominate UPI payments in India, and have previously called for the MDR to be levied on merchant payments. Both firms did not respond to emails seeking comment for the story. The Payments Council of India (PCI), a lobbying body, has requested the prime minister's office to advocate for a 0.3% MDR on payments to large merchants through UPI, according to a letter reviewed by Reuters. Without the MDR, "it will be very difficult to get the next set of Indians on the digital payments bandwagon," said Vishwas Patel, chairman of the PCI. First Published: 30 Apr 2025, 09:30 PM IST
Time of India
29-04-2025
- Business
- Time of India
Indian authorities keen to charge merchants fees to bolster homegrown payments network, sources say
India's payments authority, the central bank, and industry are pushing the government to allow a fee on digital payments to large merchants made via its homegrown network to help boost growth, five sources told Reuters. #Pahalgam Terrorist Attack The groundwork before India mounts a strike at Pakistan India considers closing airspace to Pakistani carriers amid rising tensions Cold Start: India's answer to Pakistan's nuclear threats The charge, known as Merchant Discount Rate (MDR), is considered crucial to boosting investment for payments firms, and reviving slowing growth in payments made via the Unified Payments Interface (UPI), India's own network, the sources said. A rate of between 0.2% to 0.3% of the value of each transaction has been suggested, the sources said, which would still be lower than the charges attached to credit and debit card payments. GIF89a����!�,D; 5 5 Next Stay Playback speed 1x Normal Back 0.25x 0.5x 1x Normal 1.5x 2x 5 5 / Skip Ads by by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like [Click Here] 2025 Top Trending local enterprise accounting software Esseps Learn More Undo The MDR is usually borne by the merchants, an industry executive said, so will not be passed on to customers. Two of the sources said a final decision on the fee would be made by Prime Minister Narendra Modi 's office, but the federal finance ministry supports its implementation. Live Events All the sources requested anonymity because the discussions are private. The Prime Minister's office, the Reserve Bank of India, the finance ministry and the National Payments Corporation of India (NPCI) did not immediately respond to emails seeking comment. CASHLESS Modi has sought to reduce the use of cash locally to encourage transparency and formalisation of the economy, including through a controversial 2016 decision to demonetise large value notes. That and the COVID-19 pandemic both helped increase the popularity of digital payments in India. Over the last five years, the average monthly volume of UPI transactions has jumped from about 1.6 billion to over 17 billion currently, according to NPCI data. Last month, Indians made payments worth 24.7 trillion rupees ($289.65 billion) through the UPI network in March, more than a quarter of which went to merchants. But the growth rate of UPI payments has slowed, with the value of monthly transactions growing by an average of about 25% in 2025, down from 35% last year. Walmart-backed PhonePe and Alphabet's GooglePay currently dominate UPI payments in India, and have previously called for the MDR to be levied on merchant payments. Both firms did not respond to emails seeking comment for the story. The Payments Council of India (PCI), a lobbying body, has requested the prime minister's office to advocate for a 0.3% MDR on payments to large merchants through UPI, according to a letter reviewed by Reuters. Without the MDR, "it will be very difficult to get the next set of Indians on the digital payments bandwagon," said Vishwas Patel, chairman of the PCI.
