Shares of Paytm and other digital payment-related companies are likely to be in focus after reports emerged suggesting the government is actively considering a revision in its Unified Payments Interface (UPI) policy. According to a report by NDTV Profit, the Centre is evaluating the reintroduction of a Merchant Discount Rate (MDR) on UPI transactions exceeding ₹3,000, in a move aimed at supporting banks and payment service providers (PSPs).
The zero-MDR regime, which has been in place since January 2020, eliminated charges on UPI and RuPay transactions, encouraging wide-scale adoption of digital payments. However, sources familiar with the matter told NDTV Profit that a policy shift is under discussion that would link MDR charges to the value of the transaction, rather than a merchant’s overall turnover. “While small-ticket UPI payments would likely remain exempt, larger transactions could soon carry a merchant fee, reversing the zero-MDR policy in place since January 2020,” a source told NDTV Profit.
The report states that a key meeting was held last week, involving officials from the Prime Minister’s Office (PMO), the Department of Economic Affairs, and the Department of Financial Services, to assess the possible reintroduction of MDR and the framework for its implementation.
Paytm shares opened at ₹963.75 and, at the time of writing, touched a high of ₹967.75 before dipping to a low of ₹957.60 in today’s trade. Currently, Paytm trades closer to its 52-week high of ₹1,062.95, significantly above its 52-week low of ₹377.00
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
