{
  "id": 7726198,
  "title": "Proposed UPI MDR structure doesn't make sense for broking, could raise costs: Nithin Kamath",
  "url": "https://urgent.news/2026/09/16/proposed-upi-mdr-structure-doesnt-make-sense-for-broking-could-raise",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-16T06:20:22.000Z",
  "source": {
    "name": "Economic Times Tech",
    "slug": "economic-times-tech",
    "url": "https://economictimes.indiatimes.com/tech/technology/proposed-upi-mdr-structure-doesnt-make-sense-for-broking-could-raise-costs-nithin-kamath/articleshow/134279985.cms"
  },
  "original_language": "en",
  "account": "Zerodha co-founder Nithin Kamath has cautioned that the proposed Merchant Discount Rate (MDR) on UPI transactions could prove costly for stockbrokers, even when customers make transfers without executing trades. Kamath argued that the proposed MDR structure does not account for how customers use UPI to transfer funds to brokerages, suggesting a more reasonable fee of 0.02% with a cap of ₹5 or ₹10 per transaction. The National Payments Corporation of India (NPCI) recently announced that UPI merchant transactions above Rs 2,000 will attract an MDR of 0.4% capped at Rs 300 per transaction from October 15, 2026. Kamath stressed that this could pose a significant challenge for brokers, as there's no guarantee that a fund transfer to a broker will lead to a trade. He cited a scenario where 10,000 customers could transfer Rs 2 lakh each, 50 times a month, potentially costing a broker Rs 2 crore without generating any revenue. Kamath also highlighted the impact of quarterly settlement requirements, under which brokers must return unused client funds, potentially forcing monthly or quarterly UPI transfers that could incur additional costs.",
  "summary": "The proposed Merchant Discount Rate (MDR) on UPI transactions could create significant costs for stockbrokers even when customers do not execute trades, Zerodha co-founder Nithin Kamath said, calling for a lower transaction charge with a smaller cap for the broking industry.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}