'Doesn't Really Make Sense': Zerodha's Nithin Kamath Joins UPI MDR Debate, Flags Broking Cost

Kamath said the proposed structure could create significant costs for brokers even when customers transfer money without actually making a trade.

The debate over Merchant Discount Rate (MDR) on high-value UPI transactions has now moved beyond retailers and fintech companies, with Zerodha co-founder and CEO Nithin Kamath highlighting the impact on stockbrokers and investors and how the charges won’t make sense in their current proposed form.

Kamath said that while some form of MDR may have become inevitable as UPI has grown into India’s dominant digital payments network, the proposed structure could create significant costs for brokers even when customers transfer money without actually making a trade.