National Stock Exchange's Managing Director and CEO Ashish Chauhan revealed there have been no discussions with the government regarding the new Merchant Discount Rate (MDR) on UPI payments. According to reports from Economic Times, Chauhan stated during an interaction with journalists after NSE's listing on the BSE that "this is a decision taken by NPCI (National Payments Corporation of India) ... we will have to wait and see." He characterized the situation as "an issue between broker and client" and expressed confidence that "they will find a way out of whatever the differences will be." The decision has raised questions over who will ultimately absorb the additional cost, with industry concerns focusing on the possibility of brokers bearing expenses when clients transfer funds through UPI but do not subsequently execute trades.
The National Payments Corporation of India (NPCI) has introduced a new MDR framework for UPI transactions that takes effect on October 15, 2026. As reported by Economic Times, under the framework, capital-market transactions, including payments involving stockbrokers, securities and mutual funds, will attract an MDR of 0.02 per cent, capped at ₹300 per transaction. The broader UPI framework provides for a 0.4 per cent MDR on specified person-to-merchant transactions above ₹2,000, while UPI payments to merchants up to ₹2,000 and transactions covered under the zero-MDR framework for small merchants will remain free. The Finance Ministry has indicated that around 96 per cent of P2M transactions will remain unaffected, with customers not being charged the MDR directly.
Chauhan's comments came a day after NSE made its long-awaited stock market debut on September 24. According to Economic Times, the exchange's shares listed on the BSE at ₹1,800 apiece, against an IPO issue price of ₹1,785, and closed the first session at ₹1,818. The ₹22,561.57 crore IPO, entirely an offer for sale by existing shareholders, comprised about 12.64 crore shares and was priced in the ₹1,700-₹1,785 range.
