0.02% MDR charges in stock market: Govt says decision taken after consultations with SEBI, exchanges

NEW DELHI: The government has said the decision to introduce a 0.02% Merchant Discount Rate (MDR) charge in the stock market was taken after consultations with SEBI, stock exchanges and other stakeholders.Government sources told ANI that the decision was taken after due consideration and that discussions were held with the market regulator, stock exchanges and stakeholders before the charge was finalised.The move comes amid a broader debate over the introduction of MDR charges in India's digital payments ecosystem. The government had recently announced a 0.4% MDR on UPI merchant transactions above Rs 2,000, effective October 15, while saying customers would not be charged for UPI payments.The government has maintained that the decision to introduce MDR charges is aimed at strengthening the financial sustainability and security of payment systems.The proposed UPI framework has faced opposition from traders, shopkeepers and political parties, with critics describing it as an additional burden on merchants.The finance ministry has clarified that MDR is a charge within the merchant payment ecosystem and is not directly levied on customers making UPI payments."Customers will not be required to pay any charge when making such payments through UPI," the ministry said, adding, "MDR is a charge within the merchant payment ecosystem. It is not a charge on customers making UPI payments."Individuals will also continue to have "unlimited free usage, with no monthly quotas, volume restrictions or tiered caps on free UPI transactions", the ministry said.Get the latest Business News and Live updates. Download the TOI app.