Neutral impactCorporate Action
Investing via RBI Retail Direct platform: Who will pay UPI MDR from 15 October? Experts weigh in
Mint 1 hr ago·18 Sept 2026, 4:30 pm
The Reserve Bank of India’s Retail Direct platform lets retail investors buy government securities directly, and from 15 October a new merchant discount rate (MDR) for UPI payments will come into effect. The RBI’s latest guidance clarifies which party – the investor, the broker or the platform – will bear the processing fee for these transactions.
For investors, the MDR reduces the net return on the securities, especially for smaller purchases where the fee represents a larger proportion of the investment. Knowing whether the charge is deducted from the amount invested or added on as a separate cost helps in budgeting cash flows and comparing yields with other options.
Watch for official RBI notifications and any updates from your brokerage on how they will apply the MDR. Any changes to fee structures, exemptions or pass‑through mechanisms could alter the overall cost of using Retail Direct, so stay alert to announcements in the coming weeks.
Excerpt from Mint
When you invest in government securities through RBI Retail Direct using UPI, who will bear the payment-processing cost? With MDR rules for capital market transactions changing from 15 October, here’s what investors need to know about the charges involved. For retail investors, the RBI Retail Direct scheme offers a…Read the original at Mint
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