UPI MDR on Mutual Funds: Impact on Investors

Livemint · business

A new 0.02% Merchant Discount Rate (MDR) on UPI transactions for mutual funds, capped at ₹300 per transaction, takes effect October 15. While intended for merchants, experts suggest investors might bear the charge. If passed on, it could reduce investment amounts, impacting final returns. For instance, a ₹1 lakh investment could see returns differ by ₹12 after five years. The MDR will not affect the fund's expense ratio.