"Paytm Stock Plummets 10% After Finance Ministry Denies MDR on UPI Transactions"
"Paytm Stock Plummets 10% After Finance Ministry Denies MDR on UPI Transactions"
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June 12, 2025: Shares of One97 Communications, the parent of Paytm, nosedived up to 10% intraday, hitting a low of ₹864.40 on the BSE and NSE, following a Finance Ministry statement refuting rumors of MDR charges on large UPI transactions
Investor Sentiment & Analyst Take
UBS analysis cautioned that without any MDR fee introduction or higher incentives, Paytm’s margins may take a hit, projecting a potential drop in adjusted core profits by over 10% in FY26–27.
This incident marked Paytm’s sharpest intraday fall since February 2024, reflecting heightened investor sensitivity to government policy signals
Broader Market Context
Paytm’s decline contributed to weakness in the broader market, with the Nifty 50 losing around 0.2%, partly driven by geopolitical concerns and global trade tensions
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The crash underscores how regulatory clarity—or lack thereof—can significantly sway fintech valuations and investor confidence.
Final Takeaway
What matters: The Finance Ministry’s denial of UPI MDR rumors revealed how vulnerable fintech stocks like Paytm are to policy speculation.
Investor outlook: Analysts warn of margin pressure and earnings risks in the absence of revenue-boosting mechanisms like MDR.
Market implications: Quick shifts in sentiment reflect the need for urgent transparency from regulators and for investors to monitor policy developments closely.
