New UPI MDR Explained: Impact on mutual funds, brokers & investors

The implementation of a new 0.02% merchant discount rate will influence certain UPI transactions, including one-time contributions to mutual funds and topping up broker wallets. Notably, recurring SIPs using UPI AutoPay will remain exempt from this fee. Discount brokerage firms may see a rise in operational costs, which could lead to indirect cost implications for their clients.