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.
