New Delhi, Aug. 11 -- Merchant Discount Rate (MDR) is a fee charged for processing certain digital payment transactions. It is paid by the merchant rather than directly by the consumer.

Recently, the government has created an enabling framework under which MDR on UPI could be introduced. While the final rules and applicable transaction categories are yet to be clarified, the move could have implications for mutual fund investors.

According to Siddharth Maurya, Managing Director, Vibhavangal Anukulkara Pvt Ltd, "the impact would depend more on who collects the UPI payment, who covers the MDR initially, and how the MDR is recovered."

Protima Dhawan, Director & Unit Head, Anand Rathi Wealth, said, "Investments made directly through an AMC...