New UPI MDR Framework Supports Digital Investments While Keeping SIPs Outside Mandate Charges

“The new MDR framework for UPI makes an important distinction between one-time digital investment payments and recurring investment journeys. While eligible capital-market transactions will attract a modest 0.02% MDR, capped at Rs.300, recurring investments through UPI Autopay and mandates remain outside the prescribed framework. This is important due to the fact that growth of SIPs depends on simplicity, continuity and low friction. A fair spread of MDR across the digital payment ecosystem will help strengthen the economics of the ecosystem without affecting investor behaviors. The new framework will facilitate continued investment in the digital payment infrastructure, which will boost sustainability, innovation and expansion of the digital payment infrastructure. Greater digital adoption will eventually lead to greater accessibility, efficiency and investor participation.”