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.
New charges have been introduced for UPI payments related to stock market investments, affecting mutual funds, securities, and stockbrokers. The Merchant Discount Rate (MDR) is currently set at 0.02% of the transaction value, with a maximum cap of Rs 300. This is significantly lower than standard commercial transaction rates, making it more favorable for retail participation in financial markets.
NSE MD and CEO Ashishkumar Chauhan stated that the MDR may impact trading volumes in the short term, but the effect is expected to stabilize over time. Brokers, mutual fund platforms, and other intermediaries will determine how the cost is treated, which could result in minimal or increased costs for investors. For frequent traders, the added cost may be more noticeable, while long-term investors may not experience significant changes in behavior.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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