NSE Expects Brief Transaction Volume Impact as MDR Returns on UPI Payments Above ₹2,000

The National Stock Exchange expects transaction volumes to feel some pressure in the near term following the introduction of merchant discount rate (MDR) charges on UPI payments above ₹2,000. The exchange, however, expects the initial impact to ease as users adjust to the change. 

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UPI transactions of up to ₹2,000 remain exempt from the charge, while higher-value payments can now attract MDR. 

The assessment comes at a busy time for NSE, which is preparing to open its initial public offering on September 17. 

NSE IPO to Open on September 17 

The exchange’s public issue consists entirely of an offer for sale by existing shareholders, with 12.64 crore shares being offered in a price band of ₹1,700 to ₹1,785 apiece. 

At these levels, the IPO is expected to raise more than ₹22,000 crore. 

Since there is no fresh issue of shares, the money raised through the offer will go to the selling shareholders rather than NSE. 

Interest from anchor investors has been stronger than the exchange had anticipated, particularly after the overall size of the IPO was reduced. The anchor portion has also drawn demand from domestic mutual funds, which are among the investor groups receiving allocations. 

NSE Details Scale of Trading Operations 

Ahead of the IPO, NSE has also provided a snapshot of the scale at which its trading infrastructure currently operates. 

The exchange can handle 15 lakh orders every second. With additional technology, it sees scope to increase that capacity substantially, potentially reaching 5 crore orders per second. 

On a typical day, NSE currently processes about 2,200 crore orders and 30 crore trades. 

Its investor base has grown to 13.2 crore unique investors. 

The IPO will now move into its next stage when the issue opens on September 17, while the exchange expects any initial effect of the new MDR structure on transaction activity to settle over time.