UPI MDR October 15 Rollout in Doubt: Paytm, MobiKwik, Pine Labs Shares Fall Amid Delay Buzz

Shares of One 97 Communications (Paytm), One MobiKwik Systems and Pine Labs declined on Thursday amid reports that the proposed implementation of the Unified Payments Interface (UPI) Merchant Discount Rate (MDR) could be deferred from October 15, 2026. The National Payments Corporation of India (NPCI) is reportedly considering requests from merchant bodies, fintech companies and payment firms to postpone the rollout until January 2027.

At around 11:30 AM, Pine Labs shares were trading 2.83% lower at ₹172.65, while One MobiKwik Systems declined 5.65% to ₹241. Paytm parent One 97 Communications was down 5.29% at ₹1,640.30.

The broader sell-off followed reports that the proposed MDR framework may not come into effect on October 15 as originally planned. However, NPCI has not yet taken a final decision on the deferment.

Why Is UPI MDR Being Delayed?

According to reports, merchant associations, fintech companies and payment firms have requested that the proposed UPI MDR implementation be pushed to January 2027.

The industry has raised concerns about the readiness of payment companies and merchants, particularly because of uncertainty around different MDR rates, policies and the applicability of the charges to various types of UPI transactions. Discussions are also reportedly taking place with the Ministry of Finance.

Sources cited by Reuters said a delay could give payment companies more time to upgrade their systems and help avoid disruptions during India's busy festive season. A final decision from NPCI is still pending.

What Is the Proposed UPI MDR?

Last month, the UPI Steering Committee fixed MDR at 0.4%, or 40 basis points, for eligible merchant transactions above ₹2,000. The framework was scheduled to take effect from October 15, 2026.

Importantly, the proposed MDR is a merchant-side charge. It does not mean that consumers will automatically be charged 0.4% every time they make a UPI payment.

For example, a 0.4% MDR on a ₹10,000 eligible transaction would amount to ₹40. The actual applicability depends on the transaction category and the final MDR framework.

Why Are Paytm, MobiKwik and Pine Labs Shares Falling?

The proposed MDR framework had been viewed as a potential new monetisation opportunity for companies operating in the digital payments ecosystem. Therefore, any postponement could delay expectations around potential revenue benefits.

Paytm, MobiKwik and Pine Labs shares came under selling pressure after reports of a possible deferment. Reuters reported that Paytm and MobiKwik fell around 5.5% and 7%, respectively, while Pine Labs declined about 3% during Thursday's trading.

Other market reports showed even steeper intraday declines, with Paytm briefly falling around 10% and MobiKwik and Pine Labs also recording sharp losses.

What Did RBI Governor Sanjay Malhotra Say About UPI MDR?

Amid the debate over the proposed MDR, RBI Governor Sanjay Malhotra said that a small fee was unlikely to have a significant impact on UPI transaction volumes.

He said the RBI was not currently seeing a decline in UPI volumes and did not personally expect a small fee to have a major impact on usage.

Will UPI MDR Start on October 15?

For now, the October 15 deadline remains subject to the NPCI's decision. The proposed 0.4% MDR has not been cancelled, but industry bodies and payment companies are seeking a deferment, potentially until January 2027.

Therefore, consumers and merchants should wait for an official NPCI announcement before assuming that the October 15 rollout has been postponed.