National Stock Exchange (NSE) Managing Director and CEO Ashish Chauhan clarified that the government has held no discussions regarding the newly introduced Merchant Discount Rate (MDR) on UPI payments. Speaking to journalists following NSE’s historic listing on the BSE, Chauhan stated that the National Payments Corporation of India (NPCI) made the policy decision independently. He expressed confidence that stockbrokers and their clients will resolve any operational differences directly.
NEW UPI MDR FRAMEWORK AT A GLANCE
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| Regulatory Authority | NPCI (National Payments Corporation) |
| Effective Implementation Date | October 15, 2026 |
| Applicable Sectors | Capital Markets (Brokers & Mutual Funds)|
| Applicable MDR Rate | 0.02% per transaction |
| Maximum MDR Fee Cap | ₹300 per transaction |
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NPCI Introduces Capped MDR for Capital Market Trades
The NPCI recently unveiled the updated MDR structure to streamline digital payments across capital market segments. Starting October 15, stockbroking transactions, securities purchases, and mutual fund investments will attract a 0.02% MDR, capped at ₹300 per transaction.
The broader retail UPI framework maintains a 0.4% MDR for specified merchant transactions over ₹2,000. The Finance Ministry confirmed that nearly 96% of everyday person-to-merchant transactions remain completely exempt from charges. End retail consumers will not pay the fee directly.
UPI TIER STRUCTURE & FEES
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| Transaction Category | Applicable MDR | Impact on Customers |
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| Small Merchants | Zero MDR (0.00%) | Completely Free |
| P2M (Up to ₹2,000) | Zero MDR (0.00%) | Completely Free |
| Capital Market Trades | 0.02% (Capped at ₹300)| Handled by Brokers/Clients |
| Specified P2M (>₹2000)| 0.40% | Unaffected (96% Exempt) |
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NSE Makes Market Debut Following Mega Public Issue
Chauhan’s comments coincided with NSE’s landmark listing on the BSE on September 24. Shares of the exchange opened at ₹1,800 apiece against an issue price of ₹1,785. The stock settled at ₹1,818 after its opening trading session.
NSE IPO & LISTING METRICS
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| Total Issue Size | ₹22,561.57 Crore (Pure OFS) |
| Offer Shares Capped | 12.64 Crore Shares |
| Fixed Price Band | ₹1,700 – ₹1,785 per share |
| Opening Listing Price (BSE) | ₹1,800 per share |
| First Session Closing Price | ₹1,818 per share |
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The massive ₹22,561.57 crore offer for sale allowed existing institutional shareholders to dilute their equity. Chauhan affirmed that market forces and industry stakeholders will adapt smoothly to the upcoming payment regulatory tweaks.
