New Delhi, Sept. 16 -- 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.

Kamath said he supported the introduction of MDR on UPI but argued that the proposed structure does not account for the way customers use UPI to transfer funds to broking accounts.

"I think having an MDR is okay. It still doesn't solve the problem of customers transferring money without transacting, but something like 0.02% with a cap of Rs.5 or Rs.10 per transaction seems much more reasonable for broking, instead of a cap as high as Rs.300," ...