ATM Stocks Surge Up to 5% Amid UPI MDR Rollout

Shares of cash management companies Radiant Cash Management Services and CMS Info Systems gained on September 16 amid expectations that new charges on certain UPI transactions could increase demand for cash withdrawals.

At around 11:48 am, Radiant Cash Management Services was trading 2.8% higher at ₹36.90 per share, while CMS Info Systems rose 3.3% to ₹230.32. Shares of SIS Ltd also advanced 1.2% to ₹420.

The gains came a day after the National Payments Corporation of India (NPCI) introduced a fee on select merchant transactions above ₹2,000 made through UPI.

The new 0.4% charge, which will take effect from October 15, applies to specified transactions and marks a major change after more than six years of largely free UPI payments. The move is expected to create additional revenue opportunities for banks and payment companies that have so far absorbed the costs associated with such transactions.

Market analysts have described the development as “structurally positive” for the payments ecosystem, although the potential earnings impact is expected to vary depending on transaction mix, exemptions and how the fee is ultimately distributed among participating entities.

Brokerage Citi has estimated that the new fee structure could create an annual revenue pool of around ₹16,000 crore.

Meanwhile, companies involved in cash logistics could also benefit if consumers and businesses increase cash withdrawals in response to the changes in digital-payment costs.

SIS India Cash Logistics Solutions provides services including ATM management, cash replenishment and secure cash-in-transit operations across India.

The market movement highlights how changes in UPI pricing could have effects extending beyond payment platforms, potentially influencing businesses across India’s wider cash and payments ecosystem.