A
A direct tax levied by the government on UPI transactions exceeding Rs 10,000
B
A fee charged to a merchant by a bank for accepting payments from customers via digital instruments
C
An interest subsidy provided by the central bank to commercial banks for deploying POS terminals
D
A penalty fee charged by the RBI to payment system operators for settlement delays
Correct answer: (b) A fee charged to a merchant by a bank for accepting payments from customers via digital instruments
Explanation
Option B correctly defines MDR as the fee charged to a merchant by a bank for processing payments from customers using digital instruments. Options A, C, and D are incorrect descriptions not related to MDR.
Same topic · past papers
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