Zerodha and INDmoney Flag UPI MDR Impact on Capital Market Transfers

16 Sept 2026, 1:41 pm · 2h ago · 1 min read · Inc42New

Investment platforms Zerodha and INDmoney have raised concerns over the Centre's new UPI merchant discount rate framework, which ends nearly six years of zero MDR on certain merchant transactions. Effective October 15, capital market transfers to stockbrokers, mutual funds, and investment platforms will attract a 0.02% MDR, capped at ₹300. The finance ministry stated MDR cannot be passed on to users. Zerodha CEO Nithin Kamath warned that brokers face costs on fund transfers even if trades are not executed, urging authorities to cap the fee at ₹5 to ₹10 per transaction.