INCOME TAX16 Sept 2026
'Inevitable, more competition': Nithin Kamath backs UPI MDR but flags cost burden for brokers
NPCI has announced a merchant discount rate (MDR) on selected person-to-merchant UPI payments, likely starting next month. Zerodha's Nithin Kamath calls it probably inevitable and good for competition, since three apps hold over 95% of the market. But he warns brokers may bear heavy costs when clients transfer funds without trading, and suggests a 0.02% MDR capped at ₹5-10 instead of ₹300.
Key Statutory Highlights
- NPCI announced MDR on select person-to-merchant UPI transactions, likely to come into effect from next month.
- Nithin Kamath said MDR is probably inevitable and could boost competition, since three UPI apps currently hold more than 95% of the market.
- Kamath suggested a 0.02% MDR capped at ₹5-10 instead of ₹300, because brokers cannot force a customer to trade after transferring money.
Actionable Advice for Taxpayers / Founders:If you run a business or a broking account, keep an eye on NPCI's final UPI MDR rules and check how new transfer charges may apply to you; discuss the impact with your CA before changing your payment process.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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