INDmoney says it will absorb proposed UPI MDR costs, estimates ₹11.52 crore annual impact
INDmoney CEO Ashish Kashyap said a proposed 0.02% UPI merchant discount rate, capped at ₹300 per transaction, could cost a high-volume investment platform about ₹11.52 crore annually. The company said it does not plan to pass the charge on to investors.
What happened
INDmoney CEO Ashish Kashyap said a proposed 0.02% UPI MDR could cost a high-volume investment platform about ₹11.52 crore annually. INDmoney will not pass the
Key facts
- 0.02% proposed MDR
- ₹300 MDR cap
- ₹200 crore daily wallet recharges
- ₹4 lakh daily MDR
- ₹11.52 crore estimated annual cost
What changed
INDmoney CEO Ashish Kashyap said a proposed 0.02% UPI MDR could cost a high-volume investment platform about ₹11.52 crore annually. INDmoney will not pass the charge to investors, while the ecosystem assesses cost allocation.
Why this matters
INDmoney’s decision to absorb a proposed 0.02% UPI MDR protects investor pricing but adds a meaningful payments-cost line that will require tighter transaction economics and routing discipline.
What to watch
- Final government, NPCI, RBI, or bank guidance on the MDR rate, cap, effective date, and exempt categories.
- Competitor announcements of UPI convenience fees, transaction caps, minimum ticket sizes, or alternate-payment incentives.
- Monthly UPI payment mix for investment inflows and evidence of migration to mandates or net banking.
- Brokerage platform disclosures indicating lower EBITDA margins, higher payment-processing costs, or reduced promotional spend.
- Any carve-out for securities, mutual-fund, SIP, or regulated investment transactions.