Zerodha CEO says UPI fee could end free deliveries

Zerodha CEO Nithin Kamath has warned that free equity delivery trades may end if the proposed Merchant Discount Rate (MDR) on UPI transactions is implemented. Kamath explained that brokers cannot absorb the cost of the MDR, as they may not see any revenue from UPI transfers that do not result in actual trades. He suggested a lower MDR of around 0.02 percent with a cap of Rs 5 to Rs 10 per transaction, rather than the proposed Rs 300.

Kamath's comments have sparked debate on social media, with some users questioning whether Zerodha would pass the cost onto customers.

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