Market Jitters: Paytm Shares Plunge Amid MDR Speculation

Shares of One97 Communications, the parent company of Paytm, fell 7% after the finance ministry denied plans to levy Merchant Discount Rate (MDR) on UPI transactions. Market value plunged by Rs 4,143.53 crore. The ministry emphasized its dedication to promoting digital payments and dismissed the MDR rumors as baseless.

Shares of One97 Communications, the parent company of Paytm, experienced a sharp decline on Thursday, closing 7% lower following a statement from the finance ministry.

The ministry clarified that no Merchant Discount Rate (MDR) will be applied to Unified Payments Interface (UPI) transactions, addressing rumors of an impending charge.

The market reacted sharply, with Paytm's shares plunging nearly 10% to Rs 864.20 during intra-day trading before ending at Rs 895.15 on the BSE. Market capitalization dropped by Rs 4,143.53 crore, with significant trading volume noted on both the BSE and NSE.

(With inputs from agencies.)