Over 98% of HDFC Securities’ digital broking transactions unaffected by new UPI MDR framework

HDFC Securities said more than 98% of transactions across its InvestRight and HDFC SKY platforms will remain unaffected by the new Merchant Discount Rate (MDR) framework, which comes into effect on October 15, 2026.

The brokerage said an analysis of consolidated customer transaction data between January and August 2026 showed that customers across both platforms collectively completed more than 5.23 crore transactions. Of these, around 5.14 crore transactions, or over 98%, were routed through the 3-in-1 linked HDFC Bank mandate and net banking, both of which fall outside the scope of the new MDR framework.

The 3-in-1 mandate route accounted for approximately 5.1 crore transactions, while net banking contributed another 3.6 lakh. UPI, the only channel where MDR may apply, accounted for around 9.6 lakh transactions, or less than 2% of the total volume.

UPI transactions to attract lower MDR for capital markets

Even for customers using UPI, HDFC Securities said the impact of the new framework is expected to be limited. The framework introduces a general 0.4% MDR on person-to-merchant UPI transactions above ₹2,000 from October 15. However, capital markets transactions—including mutual funds, securities, stockbrokers, and dealers—fall under a separate slab of 0.02% of the transaction value, capped at ₹300 per transaction.

Transactions of ₹2,000 or below, as well as those made through non-UPI channels, remain outside the scope of the new MDR framework.

HDFC Securities said it does not expect any material change in customer-facing pricing because of the new framework.

“Our customers have consistently gravitated toward payment channels built for ease and reliability, and that behaviour has, as it turns out, also insulated the overwhelming majority of them from this change. Where the new framework does apply, the impact is minimal given the capital markets fee slab, and it does not alter the cost of investing for customers transacting through InvestRight or HDFC SKY in any meaningful way,” said Dhiraj Relli, MD & CEO, HDFC Securities.

Brokerage pushes 3-in-1 account for seamless fund transfers

HDFC Securities said its 3-in-1 account structure, which links savings, demat and trading accounts, remains the most insulated route for transactions under the new MDR framework.

HDFC Bank savings account holders can link their accounts through the HDFC SKY website or the SKY Direct tab on the HDFC SKY app. After verification, their savings, demat and trading accounts are automatically linked. On InvestRight, most customers are already linked through their HDFC Bank accounts while a similar process is available for those who need to establish the linkage.

The brokerage said the transaction data reinforces the value of linking trading, demat and savings accounts, citing seamless fund movement and lower transaction friction. It said it will continue to monitor the implementation of the new MDR framework as it takes effect.