Archive · 16 Sep 2026
UPI Capital-Market MDR Debate Splits Views on Broking Costs
A new proposal could charge fees when some people use UPI for investing.
Nithin Kamath believes the structure could make stock broking more expensive and does not make sense.
Dhiraj Relli has a more positive view of the proposal.
He said capital-market payments would have a much lower fee of 0.02%.
The fee would be limited to Rs.
300.
He also said SIP payments made through UPI AutoPay would not be covered.
According to Relli, most one-time transfers would cost only a few rupees.
He believes the plan can help pay for UPI while keeping investing affordable for ordinary people.
Nithin Kamath said the proposed UPI structure could raise broking costs and does not make sense.
Dhiraj Relli said capital-market transactions would face a 0.02% MDR, capped at Rs. 300.
The capital-market rate is roughly one-twentieth of the cited standard 0.4% UPI rate.
Relli said UPI AutoPay-based SIPs would fall outside the framework and one-time transfers would cost only a few rupees.
Relli argued the structure would fund UPI infrastructure while protecting retail access to investing.
- Who
- Nithin Kamath and Dhiraj Relli, MD and CEO of HDFC Securities.
- What
- A debate over a proposed UPI merchant discount rate structure for capital-market transactions.
- When
- The articles do not specify when the proposal was announced or would take effect.
- Where
- India.
- Why
- The proposed structure is intended, according to Dhiraj Relli, to create a sustainable funding model for UPI infrastructure without discouraging retail investing.
Concern About Broking Costs
Support for Calibrated Charges
Impact on investors
Concern About Broking Costs
Nithin Kamath said the proposed UPI structure could raise broking costs and does not make sense.
Support for Calibrated Charges
Dhiraj Relli said the practical impact on stock-broking clients would be minimal because the capital-market rate is low and capped.
Purpose of the charge
Concern About Broking Costs
The criticism suggests the proposed structure could add an unnecessary cost to broking activity.
Support for Calibrated Charges
Relli said the charge is designed to create sustainable funding for UPI infrastructure without burdening retail investors.
Effect on retail participation
Concern About Broking Costs
Higher broking costs could risk making market participation more expensive, according to the concern presented by Kamath's statement.
Support for Calibrated Charges
Relli said the structure protects retail access, with UPI AutoPay SIPs excluded and one-time transfers costing only a few rupees.
- Proposed standard MDR
- 0.4%
- Capital-market MDR
- 0.02%
- Capital-market fee cap
- Rs. 300
- SIP AutoPay treatment
- Excluded from the framework, according to Dhiraj Relli
- One-time transfer cost
- A few rupees at most, according to Dhiraj Relli
- Kamath's view
- The proposed structure could raise broking costs and does not make sense
- Relli's view
- The structure protects retail access while supporting UPI infrastructure