Nithin Kamath, CEO of Zerodha, expressed concerns regarding the newly announced Merchant Discount Rate (MDR) on UPI transactions, stating that it could impose significant costs on brokers without generating revenue, particularly affecting the investing and broking sectors.

IN · 2026-09-16

1. Step 1 · The triggerNPCI imposes MDR charges on UPI transactions for investing and broking platforms, raising direct transaction costs.
2. Step 2 · Knock-onWithheld This step of the chain is withheld. The reason is set out in the notice above — a deliberate omission, not missing data.
3. Step 3 · Knock-onSome brokers may restrict UPI payment options or pass on MDR to end-users, raising costs for SMEs and retail investors using these platforms.
4. Step 4 · Reaches youIndian SMEs relying on UPI for investing or customer collections see higher payment costs or reduced payment flexibility, impacting working capital and operational efficiency.

The trigger is reported by the source below. The steps that follow are Branch²’s traced reasoning — how the shock could reach a business like yours, not a prediction.

Source: IN:Economic Times

This is automated analysis for information only. It is not investment advice, not a recommendation, and not a solicitation to buy or sell any security. Branch² is not authorised or regulated. Do your own research.