The Finance Department, Govt. of Maharashtra on March 18, 2026, notified regarding the implementation of a uniform policy for all banks on Merchant Discount Rate (MDR) charges applicable to revenue collected through debit card transactions on government portals.
The following has been stated:
• This Government Resolution deals with Merchant Discount Rate (MDR) charges on debit card payments made through government portals. Earlier, as per the Government of India notification, MDR charges (up to ₹2,000 transactions) were reimbursed by the Centre till December 31, 2019, to promote digital payments, but this scheme was discontinued thereafter.
• Subsequently, different state portals were following inconsistent MDR practices, with charges sometimes borne by the government and sometimes by customers. Referring to updated central guidelines, it is clarified that no MDR will be paid by government portals, and such charges shall be borne by the customer/cardholder.
• Accordingly, the state government has decided that no MDR charges will be paid by the Maharashtra Government to banks or payment gateways going forward. Departments are instructed not to approve or process any MDR-related expenditure after the date of this order.
• All existing agreements with banks/payment service providers shall be amended accordingly, and the change shall be clearly displayed on respective government portals.
• Overall, the decision aims to standardize MDR policy and shift the cost burden to users, ensuring uniform implementation across all state digital platforms.
[Notification no. - Sankirna-2020/Pr.Kr.17/Kosha Prasha-4]
