Paytm's Stock Plunge Amid MDR Speculation
Shares of One97 Communications, Paytm's parent company, dropped 10% following reports of possible Merchant Discount Rate imposition on large UPI transactions. Yet, the finance ministry refuted these claims, labeling them as false and misleading, and reiterated its commitment to promoting digital payments.
- Country:
- India
Shares of One97 Communications, the company behind the Paytm brand, witnessed a dramatic 10% plunge on Thursday. This drop occurred amidst reports suggesting the government might impose a Merchant Discount Rate (MDR) on large Unified Payments Interface (UPI) transactions.
In response to these claims, the finance ministry swiftly acted to debunk the rumors. They clarified that no such rate would be levied, calling the speculations 'false, baseless, and misleading.' This statement was made to alleviate concern and the potential uncertainty among citizens.
The government's decision highlights its commitment to fostering digital payment systems like UPI. The speculation around MDR, typically a fee merchants pay banks for processing digital transactions, had caused unnecessary confusion in the financial markets, significantly affecting Paytm's stock value.
(With inputs from agencies.)
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