UPI Merchant Discount Rates For Stocks And Mutual Funds
· Business · Moneycontrol, India Today
The National Payments Corporation of India has introduced a Merchant Discount Rate for transactions involving stock market investments and mutual fund purchases made via UPI. While retail investors remain insulated from these charges, stockbrokers and investment platforms may face increased operational costs. The new fee structure applies to transactions exceeding a specific threshold, though the exact rates and limits depend on the specific payment gateway arrangements. Industry participants are currently evaluating how these costs will be absorbed or passed on within the brokerage ecosystem. This change marks a shift in the cost dynamics of digital payments for high-value financial assets in India.
Why it matters
Stockbrokers and investment platforms face potential margin pressure from these new transaction fees, which could influence the cost structure of retail trading and mutual fund distribution in India.
Read the original report — Moneycontrol
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