Negative impactStocks
Nithin Kamath says UPI MDR structure may not work for broking
CNBC-TV18 1 hr ago·16 Sept 2026, 6:38 am
Zerodha co-founder Nithin Kamath has raised concerns about the proposed structure for Merchant Discount Rates (MDR) on UPI transactions. While he accepts that fees are inevitable, he argues the current framework could impose disproportionately high costs on stockbrokers. This could make trading less affordable for retail investors.
For the broader market, this highlights a potential conflict between payment infrastructure costs and the profitability of financial services. If brokerages face significantly higher fees, they might pass these costs onto customers or reduce the value of their services.
Investors should watch how the government and the National Payments Corporation of India (NPCI) respond to these industry concerns. A compromise on the MDR rate could be crucial to maintaining a competitive and accessible trading environment.
Excerpt from CNBC-TV18
Zerodha co-founder Nithin Kamath believes UPI MDR is "inevitable" but the proposed structure may not suit investing and broking, citing potential high costs for brokers. He suggests a lower MDR rate. I think MDR on UPI was probably inevitable at some point, especially given how widespread UPI adoption has become. It…Read the original at CNBC-TV18
Key takeaways
- Category: Stocks.
- AI reads the tone as negative (potentially bearish) for the stock.
- Assessed as a significant, market-relevant update.
Why it matters
A meaningful update worth tracking. The tone is negative — watch for downside reaction. Use the price and stock snapshot to gauge how the market is responding.
