Payments made through the Unified Payments Interface (UPI) towards mutual funds, securities, stockbrokers, dealers and investment platforms will attract a Merchant Discount Rate (MDR) of 0.02%, subject to a maximum charge of Rs 300 per transaction, under the new framework announced by the National Payments Corporation of India (NPCI).
The special rate for capital-market transactions is significantly lower than the standard 0.4% MDR applicable to select person-to-merchant (P2M) UPI transactions above Rs 2,000. The new MDR framework will take effect from October 15, 2026.
