Paytm Shares Plunge 10% as Finance Ministry Rejects MDR on UPI Transactions

Shares of

Communications Ltd, the parent company of Paytm, plummeted 10% on June 12, 2025, following the Ministry of Finance's dismissal of reports suggesting a merchant discount rate (MDR) on UPI transactions above Rs 3,000. The stock opened 5% lower at Rs 913.05, compared to its previous close of Rs 960.45, and hit a low of Rs 864.40 in early trading. By 10 AM, Paytm shares were down 7.8% at Rs 886, with 8.06 crore shares traded. The sharp decline marks the third consecutive session of losses for Paytm, despite the stock trading above its 50-day, 100-day, and 200-day moving averages. However, it remains below its 5-day and 20-day moving averages, reflecting recent bearish sentiment. The Finance Ministry’s clarification has dampened investor expectations, contributing to the significant sell-off in the fintech giant’s shares.