Zerodha, INDmoney Flag UPI MDR Impact On Brokers, Kamath Seeks ₹5-10 Cap

Investment platforms Zerodha and INDmoney have raised concerns about the new UPI merchant discount rate (MDR) framework's potential cost impact on their operations. Zerodha's CEO Nithin Kamath proposed capping the MDR charge on broking transactions at ₹5 or ₹10, while INDmoney's founder Ashish Kashyap used hypothetical scenarios to illustrate the potential costs for investment platforms.

Under the new UPI MDR framework, capital market transactions will attract a 0.02% MDR, capped at ₹300, affecting payments to stockbrokers, securities dealers, mutual funds, and investment platforms.