Brokerages Fear Additional Charges as SEBI Examines UPI MDR Rules

Industry leaders, including the chief executive of Zerodha, have warned that the proposed MDR framework appears impractical for investment‑related use cases. They cited scenarios where thousands of clients move large sums into their trading accounts through UPI, only to leave the money idle. Under the new rules, brokers could be liable for MDR fees on each transfer, potentially amounting to billions of rupees in a single month. SEBI’s forthcoming review will focus on whether such expenses can be passed on to customers or should be absorbed by the brokerage houses.