<h1>RBI Deregulates Credit Card Rates; NABARD Offers 0.5% Incentive for Aadhaar Payments; MDR Capped for Small Debit Transactions.</h1> The Reserve Bank of India has allowed banks to set their own service charges for transactions and deregulated credit card interest rates, which are subject to board approval and regulatory guidelines. NABARD has introduced a 0.5% incentive for Aadhaar-enabled payments to merchants. From January to March 2017, the Merchant Discount Rate for debit card transactions was capped at 0.25% for amounts up to Rs. 1,000 and 0.5% for transactions between Rs. 1,000 and Rs. 2,000. Banks and payment issuers are prohibited from charging fees for transactions up to Rs. 1,000 via IMPS, USSD, and UPI. Government initiatives like Lucky Grahak Yojana and Digi Dhan Yojana aim to promote cashless transactions.