Investment in MFs, stocks may get costlier as govt considers MDR on UPI: Report

A proposed UPI merchant discount rate (MDR) could raise processing costs for brokers and mutual fund distributors if financial services are included, Moneycontrol reported. The government is considering an MDR below 0.5% on payments above ₹2,000, potentially squeezing platforms' margins. An MDR of 0.25% would cost ₹25 on a ₹10,000 investment, possibly prompting firms to pass charges to customers.