Paytm Shares Surge 7% Following Government's 0.4% UPI MDR Introduction

16 Sept 2026, 2:35 pm · 3h ago · 1 min read · YourStory

Shares of One97 Communications (Paytm) jumped 7.24% to a 52-week high of Rs 1,856.50 on the BSE after the government announced a 0.4% Merchant Discount Rate on merchant UPI transactions exceeding Rs 2,000, starting October 15. Peers Pine Labs and One Mobikwik Systems also saw initial rallies before paring gains. The finance ministry clarified that peer-to-peer transfers and small ticket payments remain completely free with no usage limits. The move ends nearly six years of zero-MDR UPI rules, providing a direct monetization avenue and boosting revenue visibility for digital payments service providers.