'Seems to be an issue between the broker and client; no govt talks on new UPI MDR': NSE CEO Ashish Chauhan
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Key takeaway
NPCI introduces a new Merchant Discount Rate (MDR) on capital market UPI transactions.
- Step 1 · The triggerNPCI imposes a new MDR on UPI-based capital market transactions, raising per-trade costs for brokers.
- Step 2 · Knock-onBrokers either pass the MDR to clients via higher fees or absorb it, compressing their own margins.
- Step 3 · Knock-onHigher all-in trading costs reduce activity from cost-sensitive clients, softening trading volumes on exchanges like NSE.
- Step 4 · Reaches youSMEs reliant on capital market transactions face higher costs or reduced liquidity, impacting their operational flexibility.
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: livemint.com
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