Zerodha, INDmoney Flag UPI MDR Impact On Brokers, Kamath Seeks ₹5-10 Cap
by Shrishti Bisht · Inc42SUMMARY
- Zerodha and INDmoney have flagged the potential cost impact of the new UPI MDR on investment platforms, with Nithin Kamath seeking a ₹5-10 cap on broking transactions
- Brokers could incur MDR when customers transfer funds through UPI even if the money does not result in trades or generate corresponding brokerage revenue
- Kamath said Zerodha could not absorb the additional cost indefinitely, while INDmoney’s Ashish Kashyap illustrated how the MDR could translate into crores in annual costs for a large investment platform