Brokers Push for Flat ₹5 UPI Fee on Investment Transactions
What Happened
India's stockbroking industry is seeking changes to the new UPI Merchant Discount Rate (MDR) framework, proposing a flat fee of around ₹5 per transaction instead of the planned 0.02% MDR on capital market payments. Brokers argue that fund transfers to trading accounts are similar to bank-to-bank transfers and should attract a lower, predictable charge. Under the current framework, payments to mutual funds, stockbrokers and investment platforms will attract a 0.02% MDR, capped at ₹300 per transaction, from October 15, 2026.
Key Takeaways
The industry is lobbying for a flat-fee structure to reduce costs and complexity for investors, but no change has been approved yet. The existing 0.02% MDR framework remains scheduled to take effect next month.