SEBI rethinks 0.02% UPI MDR for stock market trades
Business
SEBI is rethinking its plan to start charging a 0.02% Merchant Discount Rate (MDR) on UPI payments for stock market transactions, with a cap of ₹300 per transaction, starting October 15, 2026.
The move has sparked debate in the finance world, especially among brokers, mutual funds, and broker associations.
Brokers decry UPI MDR, SEBI reviewing
Brokers say these new charges are unfair because they apply even if the money isn't used for trading, meaning you could get hit with fees just for moving funds in and out.
Zerodha co-founder Nithin Kamath pointed out that SEBI's rules about returning unused funds could lead to people paying this fee multiple times.
SEBI's chairman Tuhin Kanta Pandey has said they're looking into it and see how they can ease them.