Neutral impactSector
'Inevitable, more competition': Nithin Kamath backs UPI MDR but flags cost burden for brokers
Mint 1 hr ago·16 Sept 2026, 6:18 am
Nithin Kamath, the founder of Zerodha, has publicly supported the implementation of a Merchant Discount Rate (MDR) on UPI transactions. He views this move as a necessary step to ensure the long-term sustainability of the payment infrastructure. However, he highlighted that the current proposed rates could place a significant financial strain on brokers, who would be forced to absorb these costs.
Kamath suggested that a capped rate of 0.02%, with a maximum charge of ₹5-10, would be a more reasonable approach. This would help balance the need for revenue with the burden placed on trading platforms. The discussion centers on finding a middle ground that supports the growth of digital payments without stifling the brokerage industry.
Investors should watch for the final guidelines issued by the government and the RBI. The outcome will determine the operational costs for brokers and could impact the pricing strategies of financial service providers. Broader market sentiment may shift depending on the perceived fairness of the new regulations.
Excerpt from Mint
Nithin Kamath backed merchant discount rate (MDR) on UPI, calling it probably inevitable and saying it could boost competition. But he flagged the cost burden on brokers, suggesting a 0.02% MDR capped at ₹ 5-10 instead of ₹ 300. Zerodha co-founder Nithin Kamath said merchant discount rate (MDR) on UPI was "probably…Read the original at Mint
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