Paytm, MobiKwik shares fall amid potential UPI MDR postponement
What's the story
Shares of One97 Communications (Paytm's parent company) and One MobiKwik Systems fell sharply on Thursday, amid uncertainty over the potential postponement of the UPI Merchant Discount Rate (MDR). Paytm's shares fell 10% in early trading today, while MobiKwik's shares fell 7%. Pine Labs also witnessed a decline of over 2%.
Proposed adjustments
UPI MDR proposal met with deferral requests
The UPI Steering Committee had earlier proposed a 0.4% (40 bps) MDR for person-to-merchant transactions over ₹2,000 starting from October 15.
However, this proposal has now been met with requests from merchant bodies and fintechs seeking its deferral to January 2027 due to confusion over varying rates and policies.
The National Payments Corporation of India (NPCI) is expected to decide within the next few days whether to defer its proposed MDR) on UPI transactions, following consultations with the Finance Ministry.
RBI's position
RBI governor's statement on UPI MDR
RBI Governor Sanjay Malhotra has said that imposing a "small fee" in the form of MDR is unlikely to have a "major impact" on UPI transaction volumes.
He said, "As of now, we do not see any drop in volumes. And I don't personally think that a small fee will have a major impact on the volumes."
This statement comes amid discussions about the possible deferral of the UPI MDR implementation.