Shares of Pine Labs, One MobiKwik Systems and Paytm parent One 97 Communications declined during morning trading on Oct 8 as investors awaited clarity on the proposed implementation of the Unified Payments Interface (UPI) merchant discount rate (MDR).
The decline followed reports that merchant associations, fintech companies and payment service providers had requested a postponement of the proposed charges.
At 12: 20 pm, Pine Labs shares traded at Rs 170 on the BSE, down almost 4%. One MobiKwik Systems fell 6.5% to Rs 239, while One 97 Communications declined 4.7% to Rs 1,651.
UPI MDR implementation may be postponed to January 2027
According to some reports, the National Payments Corporation of India (NPCI) has received requests to defer the proposed MDR implementation until January 2027.
The charges are currently scheduled to take effect on Oct 15, 2026.
NPCI could decide on the requests within two days following discussions with the Finance Ministry.
Industry participants have raised concerns about operational readiness, particularly confusion surrounding different MDR rates, applicable transaction categories and implementation policies.
Last month, the UPI Steering Committee approved an MDR of 0.4%, equivalent to 40 basis points, on transactions exceeding Rs2,000.
The proposed fee would introduce an additional processing cost for merchants accepting eligible UPI payments.
RBI Governor sees limited impact on UPI transaction volumes
Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday said introducing a modest MDR was unlikely to significantly affect UPI transaction volumes.
"As of now, we do not see any drop in volumes," Malhotra told reporters at the central bank's headquarters.
He added that a small transaction fee would probably not substantially influence payment activity.
His comments followed the RBI's decision to increase its benchmark interest rate and signal that further rate cuts were not currently under consideration.
Malhotra also expressed confidence that bank credit growth would remain strong and continue supporting economic activity.
Addressing concerns about non-banking financial companies, he said the central bank remained alert to possible asset quality risks arising from abundant liquidity.
However, the RBI did not currently anticipate a deterioration in loan quality.
