NSE CEO Ashish Chauhan says no govt talks on new UPI MDR; expects brokers, clients to resolve issue

According to fresh market updates, National Stock Exchange’s (NSE) Managing Director and CEO Ashish Chauhan stated there have been no discussions with the government on the new Merchant Discount Rate (MDR) on UPI payments, adding that it is an offering between brokers and their clients and that they will most likely find a way out of the situation.

“No discussion on MDR with the government. This is a decision taken by NPCI (National Payments Corporation of India) … we will have to wait and see,” Chauhan stated during an interaction with journalists after NSE’s stock-exchange debut on the BSE.

“It seems to be an offering between the broker and client. They will find a way out of whatever the differences will be,” he further noted.

The comments came after the NPCI introduced a new MDR framework for UPI transactions. Under the framework, capital-market transactions, including payments involving stockbrokers, securities and mutual funds, will attract an MDR of 0.02 per cent, capped at Rs 300 per transaction. The new charges are set to take effect from October 15.

The broader UPI framework provides for a 0.4 per cent MDR on specified person-to-merchant transactions above Rs 2,000, while UPI payments to merchants up to Rs 2,000 and transactions covered under the zero-MDR framework for small merchants will stay free. The Finance Ministry has stated around 96 per cent of P2M transactions will stay unaffected, while customers will not be charged the MDR.

His comments came a day after NSE made its long-awaited equity market debut on September 24. The exchange’s shares listed on the BSE at Rs 1,800 apiece, against an IPO offering price of Rs 1,785, and closed the first session at Rs 1,818.

The Rs 22,561.57 crore IPO, entirely an offer for sale by existing shareholders, comprised around 12.64 crore shares and was priced in the Rs 1,700-Rs 1,785 range.