UPI MDR return could boost Paytm, Pine Labs earnings

In India, people use a payment system called UPI to send money using their phones.

Right now, shops do not have to pay a fee when customers pay them with UPI.

The government is thinking about a new rule that could let banks charge shops a small fee, called MDR, for bigger UPI payments.

If this happens, payment companies could earn more money.

Two big payment companies are Paytm and Pine Labs.

A financial research company called Jefferies thinks Paytm could earn an extra Rs 300 crore to Rs 730 crore every year.

Jefferies thinks Pine Labs could earn an extra Rs 50 crore to Rs 150 crore.

Both companies already did very well in the last quarter and made a profit.

Paytm's profit before interest and taxes grew a lot compared to last year.

The final decision still depends on the Reserve Bank of India and NPCI, so nothing is guaranteed yet.

If the fee returns, it could give both companies an extra boost along with their own growth plans.