Fintech stocks like Paytm, Pine Labs, One Mobikwik Systems recovered significantly after National Payments Corporation of India (NPCI) said UPI MDR shall be implemented "immediately after Diwali".
Paytm shares fell up to 6.5% as the rollout of merchant discount rate (MDR) on UPI transactions has been deferred. Other fintech stocks like Pine Labs, One Mobikwik were trading 4% lower.
However, the stocks recovered from day's low with Paytm trading 1.4% lower and Pine Labs was trading in green at 1:40 pm on October 13. One Mobikwik was trading nearly 3% lower.
"UPI and Services Steering Committee today decided that, keeping in mind the festive season, Merchant Discount Rate (MDR) on select Person-toMerchant (P2M) UPI transactions, shall be implemented immediately post Diwali at a date to be notified separately," said NPCI in a statement.
As per the National Payments Corporation of India (NPCI) circular issued last month, a 0.4% Merchant Discount Rate (MDR) will apply to person-to-merchant (P2M) UPI payments above Rs 2,000.