"Happy Digital 2018. December Quarter BHIM transaction rises 86 per cent to 145.6 million with value of Rs 13,174 crore," Financial Services Secretary Rajiv Kumar said in a tweet.
"Further impetus to digital payments, government to reimburse charges for transaction up to Rs 2,000 on debit cards/BHIM. Zero charges on merchants. Go Digital, embrace transparency," he said.
The merchant discount rate (MDR) will be borne by the government for two years with effect from January 1, 2018 by reimbursing the same to banks.
The move will have an impact of Rs 2,512 crore on the exchequer.
The decision was taken at the Cabinet meeting chaired by Prime Minister Narendra Modi.
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