NSE CEO Ashish Chauhan confirmed the exchange will not intervene in the implementation of the new 0.02% UPI transaction fee starting October 15. This fee, governed by the NPCI, will need to be resolved between stockbrokers and their clients, potentially affecting the final costs for retail investors.
As the October 15, 2026, deadline approaches for the new UPI transaction fee, the National Stock Exchange (NSE) has clarified its position on the matter. CEO Ashish Chauhan stated that the exchange remains separate from the ongoing discussions surrounding the 0.02% Merchant Discount Rate (MDR) on UPI transactions for securities and mutual fund investments.
The NPCI (National Payments Corporation of India) directive mandates a 0.02% fee on UPI payments for stock market transactions, with a maximum cap of ₹300 per trade. This rule has led to uncertainty regarding who will bear the cost—brokers or the retail investors who use UPI to fund their trading accounts. Mr. Chauhan emphasized that the NSE is not involved in these payment-level decisions, framing the implementation as a procedural move managed by the NPCI rather than a policy change within the exchange.
For investors, the primary implication is that the settlement of these costs will likely depend on individual agreements between brokerage firms and their customers. Industry participants are currently navigating how to manage this extra cost, and there is no centralized directive from the exchange that forces a specific outcome on whether brokers will absorb the fee or pass it on to traders. Investors may observe different approaches from various brokers as the implementation date nears.
The exchange itself remains focused on its operational goals following its recent public listing. After debuting on the Bombay Stock Exchange (BSE), NSE shares opened at ₹1,800, notably above the IPO price of ₹1,785, and concluded the session at ₹1,818. While the UPI fee adjustment is a significant change in the payments ecosystem, the management has indicated that the exchange views it as a secondary matter compared to its core trading infrastructure and recent equity capitalization efforts.
Moving forward, the key monitorable for market participants will be the announcement of fee structures from individual brokers. Investors should track their brokerage’s communications regarding UPI payment charges to understand if their personal trading costs will change after October 15. The impact on total transaction volume will also be a factor to watch as the market adjusts to the new payment environment.