India, Sept. 22 -- MDR applied on the UPI transactions will result in another cost aspect for the broking industry. Even though the clients will not be charged any fees, the broking companies may incur this cost on transactions that qualify for MDR charges. This aspect will become quite important especially when the clients keep transferring money into their accounts without making any trade deals.

Why Could UPI MDR Become a Cost for Brokerages? According to the proposed system, eligible capital-market payments to stockbrokers will attract 0.02% MDR, capped at Rs300. The broader UPI framework applies 0.4% MDR to eligible merchant transactions above Rs2,000, while transactions up to Rs2,000 remain outside the framework. Brokers may have ...