New charges on UPI payments: Here's what you will be charged for stock market investments
UPI payments for capital market transactions will attract a nominal 0.02% Merchant Discount Rate, capped at Rs 300. The fee covers mutual funds, securities, brokers and dealers, with limited impact expected for long-term investors but greater sensitivity among frequent traders.
The finance ministry has announced that a 0.4% merchant discount rate (MDR) will apply to person-to-merchant (P2M) UPI transactions above ₹2,000, while person-to-person (P2P) transactions will remain free of charges. For transactions of ₹75,000 and above, the MDR will be capped at ₹300 per transaction. The new framework comes into effect from October 15, aiming to create a sustainable funding mechanism for the UPI system while ensuring that small merchants and P2P transactions remain unaffected by the changes.
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