Mumbai, 12 June (IANS). Shares of Fintech Company Paytm’s promoter forest 97 Communications shares fell 10 percent to Rs 864.20 on Bombay Stock Exchange (BSE) in early trade on Thursday.
However, the stock later saw recovery and it was at Rs 53.70 or 5.59 percent to Rs 906.75.
The reason for the fall in Paytm’s shares is believed by the government to re -implement the merchant discount rate (MDR) on UPI payments.
MDR is a fee that takes from traders for the process of payment service provider digital payments like banks or Paytm.
At present, the government has removed MDR from UPI transactions to promote digital payment.
Some media reports claimed that the government is considering imposing MDR on high -value UPI transactions. These reports created a stir among investors.
The Finance Ministry issued a statement in strict words, calling these claims ‘baseless and sensational’.
The ministry said that such rumors create fear and confusion among the people and these are not true.
Earlier in March, Payments Council of India, which represented companies involved in digital payments, wrote a letter to Prime Minister Narendra Modi.
The industry body had requested the government to bring back the MDR on UPI and RuPay Debit Card Transactions.
The industry body suggested to impose a small fee on big traders using UPI and a small fee on all transactions of RuPay debit cards.
However, the government has not yet taken any such decision. Currently, there is a dominance of PhonePe and Googlepes in the UPI area. The market share of these two companies is more than 80 percent.
-IANS
ABS/
