Business · India Bureau
Flat ₹5 UPI fee proposal floated for stock market transactions
A proposal to impose a uniform ₹5 charge on UPI payments for capital market transactions is under consideration, requiring clearance from market regulator Sebi before proceeding to the Reserve Bank of India and government approval.
LSN India ·
A flat ₹5 UPI transaction fee for capital market dealings has emerged as a potential restructuring of the merchant discount rate (MDR) framework, according to discussions within financial sector bodies. The proposal aims to standardize costs for investors conducting securities trades through unified payments interface channels.
The initiative requires formal representation and endorsement from the Securities and Exchange Board of India (Sebi), which oversees equity and derivatives markets. Following Sebi's review, the framework would need approval from the Reserve Bank of India, which regulates the payments system, before final government sign-off.
The move comes as regulators examine fee structures across digital payment channels to balance accessibility for retail investors with sustainability for payment service providers. Capital market participants have increasingly adopted UPI for equity transactions, creating demand for clarity on transaction costs.
The timeline for inter-regulatory consultations remains unclear. Sebi's response will likely shape final parameters, including whether exemptions or variations apply to different transaction sizes or market segments.