Shares of financial technology companies, including Paytm, One Mobikwik other UPI Systems, closed lower amidst reports that a proposal to extend the deadline for implementing the Merchant Discount Rate (MDR) on UPI from October 15 to January 1 is under consideration.
Will MDR Not Be Levied On UPI From October 15?
Last month, the government had permitted the levy of MDR on UPI payments exceeding ₹2,000. This charge was to be collected from merchants. Following that announcement, fintech stocks had rallied as the market anticipated additional revenue generation.
According to reports, a proposal to postpone the implementation date of UPI MDR from October 15 to January 1 is being considered, and a decision on the matter is expected within the next few days.
Meanwhile, the economic research institute Global Trade Research Initiative (GTRI) stated that the government should withdraw the proposed UPI charges scheduled to take effect on October 15 and keep the digital payment system free for both merchants and consumers.
Shares Of Paytm And Other Fintech Companies Fell
Separately, shares of One97 Communications the owner of the Paytm brand fell by up to 10 percent to ₹1,560.60 during trading on the BSE. However, the stock later recovered slightly and closed at ₹1,640, down 5.42 percent.
Shares of One Mobikwik Systems dropped 8.43 percent to ₹234.40 during trading. Ultimately, the stock closed at ₹244.30, a decline of 4.57 percent. Pine Labs’ shares fell 4.95 percent to ₹168.75 during trading and finally closed at ₹169.75, down 4.39 percent.
