Indian digital payment stocks fell after reports emerged that authorities are considering postponing the rollout of the merchant discount rate (MDR) on UPI transactions from October 15 to January 1 of the following year, according to media reports.

Shares of One 97 Communications, the parent company of Paytm, dropped as much as 9.9%, while Pine Labs declined 3.3%, One Mobikwik Systems fell 8.4%, and AvenuesAI slid 2.7%.

Citing people familiar with the matter, Business Standard reported that a final decision is expected to be made within the coming days.

Amid opposition from retail traders, delaying the fee implementation means merchants can continue using UPI payments free of charge throughout the entire festive season.

The report noted that a panel led by the National Payments Corporation of India (NPCI) met on Wednesday to discuss the issue. NPCI did not respond to the media outlet's inquiry.