<h1>Government Pushes Cashless Transactions for Financial Inclusion; Caps Merchant Discount Rate at 1% for Debit Cards.</h1> The government is promoting cashless transactions to enhance financial inclusion, improve tax compliance through digital transaction trails, and reduce cash maintenance costs. This initiative aims to help small and micro enterprises access formal credit. Merchants are required to pay the Acquiring Bank a Merchant Discount Rate (MDR) of no more than 1% for debit card transactions. This information was provided by the Commerce and Industry Minister in a written reply to the Lok Sabha.