- Confusion of Charges on UPI even in share purchase!
- Will the broker pay or will the investor's pocket be hit?
- Will the customer be charged directly or not?
UPI Charges On Share Purchase : MDR charges will be applicable on UPI. Due to this, confusion is starting all over the country. Traders are upset as the additional burden will fall on traders. But this charge is now going to affect not only the traders, but also the stock market. Amidst all this, there have been reports of ongoing talks between the NSE and the government, which Ashish Kumar Chauhan, Managing Director and Chief Executive Officer of the National Stock Exchange, NSE, recently commented on. Exactly who will this burden fall on, the brokers or the investors? Big news for customers before Bank Strike! Now withdraw money from any ATM for free, charges removed by government banks
Speaking to 'Economic Times', Ashish Kumar Chauhan explained that NSE has not held any discussions with the government regarding the new Merchant Discount Rate (MDR) for UPI. He clarified that the matter is entirely between stock brokers and their clients. Together, they will have to decide how to deal with the impact of these new charges.
MDR effective from 15th October
From October 15, 2026, UPI payments related to stock market and other capital markets will be subject to MDR of 0.02%. This includes payments related to shares, securities, mutual funds and stockbrokers. However, this fee has been capped at ₹300 per transaction. This means that MDR will not exceed ₹300 per transaction even for large payments.
Customers will not be charged directly
MDR is not charged directly from consumers. This cost is borne by the merchant, i.e. the receiving party. The question is whether this additional cost will be borne by the brokers or other companies themselves or will it affect customers in the future.
Problems faced by brokers
Suppose, a customer deposits money into his broker's account through UPI, but does not buy any shares later. In such cases, the broker may still have to pay MDR. This raises the question of who will bear this additional cost in such cases. According to Ashish Chauhan, CEO, NSE, brokers and clients will have to jointly resolve this. He added that it remains to be seen how brokers and clients react to these new charges.
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