HDFC Securities says 98% of digital transactions insulated from UPI MDR
The broker’s UPI transaction share is below 2%, much lower than wider broking industry’s reliance on UPI
HDFC Securities asserts that the vast majority of its digital transactions, around 98 percent, will remain unaffected by the upcoming UPI merchant discount rate (MDR) framework. According to an analysis of customer transaction data from January to August, the brokerage house processed over 5.23 crore transactions, with approximately 5.14 crore, or more than 98 percent, routed through its HDFC Bank-linked 3-in-1 mandate or net banking.
These payment channels are excluded from the MDR framework. UPI transactions represented about 9.6 lakh, or under 2 percent of the total. The 3-in-1 mandate route accounted for roughly 5.1 crore transactions, while net banking contributed around 3.6 lakh. HDFC Securities' MD and CEO, Dhiraj Relli, stated that the new framework is unlikely to cause any significant changes to customer-facing pricing due to the company's payment-channel mix.
The payment mix places HDFC Securities in a different position than the discount brokerage industry, where UPI has become a major channel for funding trading accounts. SEBI has received concerns from broker associations that around 90 percent of broking transactions occur through UPI, accounting for about two-thirds of money added or traded on broking platforms.
The new MDR framework will impose a 0.02 percent charge on UPI transactions in the capital-market category, including payments to stockbrokers, mutual funds, securities, and dealers, with a cap of ₹300 per transaction, starting October 15. SEBI chairman Tuhin Kanta Pandey indicated that the regulator would investigate the concerns raised by stockbrokers and consider potential measures to alleviate them.
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