Paytm shares fall 10% to see biggest single-day fall in over one year. Is this RBI decision to be blamed?

Paytm share price

• Paytm shares fell nearly 10 percent, hitting a three-month low on January 23
• Concerns over RBI's PIDF scheme extension may impact Paytm's operating revenue
• Paytm: No PIDF extension update yet, plans to offset revenue impact.

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The shares of Paytm dropped nearly 10 percent on January 23, falling to a three-month low level. The stock has now fallen around 15 percent in the past five days.

The shares of the fintech platform dropped to Rs 1,134.50 apiece, the lowest level seen since October 1 last year. The stock has now recorded the worst single-day drop since January 2025.

Why are Paytm shares falling today?

One of the reasons why Paytm shares saw strong downturn today could be concerns around Payment Infrastructure Development Fund (PIDF) that was extended until December 2025, according to CNBC-TV18.

The initiative by the Reserve Bank of India (RBI) aimed to encourage deployment of digital payments acceptance infrastructure like soundboxes and POS devices, through incentives. Notably there has been no update yet as to whether the scheme will be extended beyond 2025.

Paytm can see an impact of nearly Rs 200 crore in annualised operating revenue if the scheme is not extended, a hit that would directly impact the fintech giant’s EBITDA, NDTV Profit reported.

Here's what Paytm said:

After the shares saw strong volatility following the reports, Paytm issued a clarification. It said that it received Rs 128 crore as incentive under the scheme for the six months ended September 30, 2025.

Paytm acknowledged that no announcement regarding the extension of the scheme has been made yet. "In the scenario that the current Scheme is not extended or replaced, we expect to significantly offset the impact over time through a combination of higher revenues and more targeted sales efforts," it added.

Paytm quarterly results:

Paytm is set to release its results for the October-December quarter (Q3) of the ongoing financial year 2026 on January 29.

Earlier in November, Paytm reported a consolidated net profit of Rs 21 crore for the quarter ended September 2025 (Q2 FY26), marking a sharp decline from Rs 930 crore in the same period last year due to a one-time gain of Rs 1,345 crore in the base quarter.

Revenue from operations rose 24 percent year-on-year to Rs 2,061 crore and 7 percent higher quarter-on-quarter from Rs 1,918 crore in Q1 FY26, driven by sustained growth in financial services and merchant payments.

Paytm share price:

Paytm shares have declined more than 16 percent in the past one month, but gained over 7 percent in the past six months. This comes after the stock gained over 34 percent in the past one year.

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