F. No. 1(1)/2006/ECS/TA/669

Office of the Controller General of Accounts

Department of Expenditure, Ministry of Finance

Mahalekha Niyantrak Bhawan, New Delhi

Date 14.12.2016

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Office Memorandum

Subject: Guidelines for payment of applicable MDR charges on Government dues through debit/ credit cards

A reference is invited to this office OM No. I (I)/2006/ECS/TA/335 dated 14th July 2016 on the above subject. The Government of India decision for the promotion of payments through cards and other digital means as conveyed vide OM no. 01/02/2015-Cy.II/Vol.V/278- 371 dated 29th February 2016 also refers. The operational modalities for the absorption of MDR charges by Government of India in respect of receipts through debit /credit cards are approved, as given hereunder.

2. Budget Division will make the necessary budget provision under relevant head of Account in the Demand for Grant of the Department of Economic Affairs, Ministry of Finance for payment of MDR charges, as applicable, in respect of all receipt transactions of Government of India.

3. The authorized collecting banks receiving Government of India dues i.e. tax revenue and other receipts through the above payment modes shall submit the claims of applicable MDR charges in respect of Government transactions to RBI. RBI, after due scrutiny, would reimburse such authorized banks” claims of applicable MDR charges on Government receipt transactions through credit to the concerned Bank and debit the Government as per budget provision under the head of account in the designated scheme in the Demand for Grant of the Department of Economic Affairs, Ministry of Finance. The amount so paid will be reflected in the payment scroll to be sent by RBI to PAO. Department of Economic Affairs, Ministry of Finance.

4. On receipt of Payment scroll, PAO, Department of Economic Affairs, Ministry of Finance will debit the expenditure head of Account for MDR charges maintained centrally in Demand for Grant of Department of Economic Affairs by per contra credit to the Major Head 8675-Deposits with Reserve Bank-101- Central -Civil.

This issues with the approval of Finance Secretary.

(Soma RoyBurman)

Joint CGA

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