UPI: There was a stir in the digital payment and fintech sector when the news of postponement of the date of implementation of Merchant Discount Rate (MDR) on UPI came to light. According to media reports, a proposal to postpone this rule, which came into effect from October 15, till January 1, 2026, is now being considered. However, no statement has come from the government on this yet. At the same time, investors, worried about the date being extended and the environment of uncertainty, sold the shares of fintech companies heavily, due to which the shares of big companies like Paytm and Mobikwik closed with a huge fall.
Paytm down 10%
The shares of fintech companies expecting additional earnings from UPI got a huge blow due to this news. Shares of Paytm’s parent company fell by a massive 10 per cent to ₹1,560.60 on the Bombay Stock Exchange (BSE). At the same time, Mobikwik shares closed at ₹ 234.40, taking a dive of 8.43 percent. Apart from this, shares of other fintech company Pine Labs fell 4.95% to ₹168.75 and Network People Services Technologies (NPST) fell 4.39% to ₹1,772.60.
What are the complete rules of MDR on UPI?
Recently the government had given permission to charge Merchant Discount Rate (MDR) on UPI transactions. Under this rule, a charge (MDR) of 0.4 percent was fixed on digital transactions above ₹2,000. This fee will be charged from merchants, which is expected to give a big benefit to companies like payment gateway and Paytm/MobiKwik in revenue. When this decision was announced last month, there was a strong rise in the shares of these fintech companies.
Why can the deadline of October 15 be postponed?
According to sources, merchants and businessmen have demanded some more time to implement this system. This is why the government and concerned agencies are seriously considering the proposal to implement it from January 1 instead of October 15. However, the final official decision on this is likely to come in the next few days. But at present, the news of postponement of the implementation date has completely spoiled the mood of the market.