Indian brokers raise concerns over UPI MDR from October 15
India's new UPI (Unified Payments Interface) Merchant Discount Rate (MDR) rules, set to start October 15, have stockbrokers like Groww and Zerodha worried.
Brokers are planning to write to SEBI (Securities and Exchange Board of India) and are likely to propose capping fees at ₹5 and raising the zero-fee limit from ₹2,000 to ₹20,000, arguing that MDR on trading account transfers doesn't make sense since there's no guaranteed trade or income from these deposits.
Retailers may revert to cash
D2C brands are also feeling the heat, especially with festive sales coming up.
Sirona founder Deep Bajaj pointed out that even a small fee can really cut into tight profit margins.
Retailers now have to decide if they'll keep accepting UPI for bigger purchases or switch back to cash, since fees on payments over ₹2,000 might put people off digital payments right when shopping season peaks.