Archive · 23 Jan 2026
Paytm Shares Drop 10% Amid RBI Concerns
Paytm's shares dropped by 10% on Friday because people are worried that the Reserve Bank of India (RBI) might not continue a special program that helps Paytm and other companies set up digital payment systems in smaller areas.
This program, called the Payment Infrastructure Development Fund (PIDF), helps Paytm make money, so if it ends, Paytm might lose about ₹200 crore every year.
Some experts still think Paytm is a good investment and believe its shares could go up by 23%.
Paytm is a big player in India's digital payments market, competing with companies like PhonePe.
While Paytm is focusing on making a profit, PhonePe is getting ready to go public.
Both companies have different ways of making money and managing risks, but Paytm's shares are still lower than when they first started selling them to the public.
Paytm's shares dropped 10% on Friday due to concerns over the potential discontinuation of the RBI's Payment Infrastructure Development Fund (PIDF) scheme after December 2025.
The PIDF scheme helps Paytm and other companies set up digital payment systems in underserved regions, and its discontinuation could result in an annual revenue loss of around ₹200 crore for Paytm.
Analysts at Investec have given Paytm a 'Buy' rating with a target price of ₹1,550 per share, implying a potential upside of 23% from the previous closing price.
Paytm operates in several markets where a few players dominate, giving it long-term pricing power and high switching costs for merchants.
Paytm's shares have fallen 12% in one month and 8% in three months but have risen 40% in one year, still trading more than 45% below its IPO price of ₹2,150 per share.
- Who
- One 97 Communications (Paytm's parent company)
- What
- Share price drop due to potential discontinuation of RBI's PIDF scheme
- When
- Friday (specific date not mentioned)
- Where
- BSE (Bombay Stock Exchange)
- Why
- Concerns over the potential discontinuation of the RBI's PIDF scheme after December 2025
- Company
- One 97 Communications (Paytm's parent company)
- Share Price Drop
- 10%
- Current Share Price
- ₹1,134.85
- RBI Scheme
- Payment Infrastructure Development Fund (PIDF)
- Potential Revenue Loss
- ₹200 crore annually
- Analyst Rating
- Buy with target price ₹1,550
- Paytm's Market Position
- Operates in oligopolistic markets with deep tech capabilities
- Key Risks
- Regulatory changes, competitive intensity, loan asset quality
