Why One 97 Communications, parent of Paytm, shares rose 5% in trade today?

One 97 Communications, parent of Paytm, shares gained 5.3 per cent on BSE, logging an intraday high at Rs 700.7 per share. The stock rallied after reports suggested that Indian government may consider restoring merchant charges on UPI.

These charges, known as the merchant discount rate (MDR) in the payments industry, are fees merchants pay to banks to process real-time transactions. Currently, no MDR is applied to UPI and RuPay debit card payments, which are facilitated through the National Payments Corporation of India (NPCI).