Zerodha founder Nithin Kamath has warned that equity delivery trades, currently free for customers, may not stay that way if the proposed Merchant Discount Rate (MDR) on UPI transactions comes into effect as planned. In a post on X, Kamath said brokers simply do not have the room to keep absorbing a charge that applies to every UPI transfer, whether or not it results in an actual trade.
Kamath's comments come amid a wider discussion on introducing MDR on UPI payments, a move he says was likely inevitable given how large UPI has become, but one he believes needs a different structure for brokers compared to regular merchants.
