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RBI Move Sparks Paytm Stock Plunge
23 Jan
Summary
- Paytm shares crashed 10% amid RBI scheme uncertainty.
- The RBI may not extend the PIDF scheme post-December 2025.
- Discontinuation could cost Paytm ₹200 crore in annual revenue.
One 97 Communications, the parent entity of Paytm, saw its share price plummet by as much as 10% on Friday. This significant drop followed news that the Reserve Bank of India (RBI) may not extend the Payment Infrastructure Development Fund (PIDF) scheme beyond its current term ending December 2025.
The PIDF scheme, an initiative by the RBI, aims to boost digital payment infrastructure in underserved areas. It achieves this by subsidizing the deployment of essential tools like Point-of-Sale (PoS) devices and QR codes.
Analysts are concerned that if the PIDF scheme is not extended, Paytm could face an annual operating revenue loss of around ₹200 crore. This figure directly contributes to the company's EBITDA, highlighting the potential financial impact of the scheme's discontinuation.
