Nithin Kamath Warns of Higher Costs for Brokers Under New UPI MDR
· Business · Economic Times, Zee News, News18
Zerodha co-founder Nithin Kamath has expressed concern that the proposed UPI Merchant Discount Rate (MDR) structure will unfairly increase costs for stockbrokers. He argued that the 0.4% fee, capped at Rs 300, does not account for fund transfers that do not result in actual trades. Kamath suggested a more reasonable structure would be a 0.02% fee with a lower cap of Rs 5 or Rs 10 per transaction. He noted that brokers cannot force customers to trade, potentially leaving firms to absorb significant costs without corresponding revenue.
Why it matters
The proposed fee structure could impact the operational costs of brokerage firms, potentially influencing how they manage customer fund transfers.
Read the original report — Economic Times
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