Nithin Kamath says UPI MDR may create a costly problem for brokers
- Zerodha co-founder Nithin Kamath said MDR on UPI was likely inevitable as adoption has grown, but it could boost competition.
- In a Substack post, Kamath said the proposed MDR structure may not work for investing and broking businesses.
- He said 10,000 customers making 50 transfers of ₹2 lakh each could cost a broker around ₹2 crore without trades.
- Kamath suggested a 0.02% MDR capped at ₹5–₹10 per transaction for broking, instead of a cap as high as ₹300.
Source: nithinkamath.substack.com
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