{"id":310999,"date":"2026-10-15T15:34:23","date_gmt":"2026-10-15T10:04:23","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=310999"},"modified":"2026-10-15T15:34:23","modified_gmt":"2026-10-15T10:04:23","slug":"sebi-discusses-new-upi-merchant-charges-with-npci-as-brokers-flag-cost-concerns","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/sebi-discusses-new-upi-merchant-charges-with-npci-as-brokers-flag-cost-concerns\/","title":{"rendered":"Sebi Discusses New UPI Merchant Charges With NPCI as Brokers Flag Cost Concerns"},"content":{"rendered":"

The new UPI MDR framework from NPCI took effect on 15 Oct 2026. It charges 0.4% on specified person to merchant payments above Rs 2,000, capped at Rs 300 per transaction, which is reached at Rs 75,000. Capital market payments such as broker top-ups and mutual funds carry a lower 0.02% rate, also capped at Rs 300. Discount brokers fear the charge may exceed their brokerage income, and Sebi said it will examine their concerns.<\/em><\/p>\n

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Quick Answer<\/strong><\/p>\n

The new UPI MDR framework from NPCI took effect on 15 October 2026 and charges merchants 0.4% on specified person to merchant payments above Rs 2,000, with a cap of Rs 300 per transaction. Payments up to Rs 2,000 stay free, and capital market payments to brokers, stockbrokers and mutual funds carry a lower rate of 0.02%, also capped at Rs 300. Discount brokers have flagged that the charge could exceed their brokerage income, especially when client money is transferred and returned unused, and Sebi said it will examine these concerns. The merchant pays the charge and the customer is not billed directly, but the rules on pass through and on refunds are still open.<\/p>\n<\/p><\/div>\n

The UPI MDR is the first time a merchant discount rate has applied at scale to UPI, which has run as a free payment system for merchants since its launch. The headline is that Sebi is discussing the rate with NPCI because brokers say it hurts their business.<\/p>\n

This guide explains the UPI MDR slabs, how the capital markets rate differs, what brokers are worried about and what investors should watch. I mark clearly where my sources are secondary or incomplete.<\/p>\n

Click Here – Get Free Investment Predictions<\/a><\/strong><\/p>\n

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