What will happen to investors on digital broking platform? INDmoney CEO responds to UPI MDR charges — SkimNews
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- UPI MDR proposal at 0.02% (capped at ₹300) for capital market transactions has ignited industry debate over who absorbs the cost — platforms, market infrastructure providers, or retail investors.
- Ashish Kashyap of INDmoney calculated that a platform processing ₹200 crore in daily wallet recharges faces ₹4 lakh in daily MDR charges, totaling ₹11.52 crore annually across an estimated 24 trading days per month over 12 months.
- INDmoney will not pass the MDR cost to its investors, with Kashyap calling the ₹11.5 crore liability "a negative straight to the bottom line."
- Mutual fund transactions typically route through central infrastructure providers like BSE StAR MF rather than the broker acting as sole merchant of record, complicating who ultimately absorbs the fee.
- Industry participants are still evaluating how the 0.02% charge flows through payment gateways, clearing houses, and intermediaries, per Kashyap.
Why it matters: A nominal-sounding 0.02% UPI MDR becomes an ₹11.52 crore annual drag for one mid-sized platform processing ₹200 crore in daily wallet recharges, per INDmoney's math — forcing brokers to either compress their own margins or break the zero-cost funding promise that has anchored India's retail trading boom.
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