Paytm shares dropped nearly 10% on Friday, marking the largest single-day fall in over a year.
The decline was driven by market concerns over the RBI’s PIDF scheme, which currently has no confirmed extension beyond December 2025.
This comes ahead of Paytm’s Q3 FY26 results, which will be out on January 29.
Paytm Stock Tanks 10% in a Single Day: Did an RBI Scheme Trigger the Drop?
The stock dropped to a three-month low, extending losses for the fourth time in the last five trading sessions, as investors reacted to concerns around regulatory uncertainty affecting Paytm’s payments business
Paytm Stock Tanks 10% in a Single Day: Did an RBI Scheme Trigger the Drop? AI-generated Image
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Shares of One97 Communications, the parent of digital payments platform Paytm, tumbled nearly 10% on Friday, January 23, 2026, marking the steepest single-day drop in more than a year and pushing the stock to its lowest levels since October 2025. The stock fell as much as ₹1,134.25 on the BSE, and closed at ₹1,140.75.
The stock dropped to a three-month low, extending losses for the fourth time in the last five trading sessions, as investors reacted to concerns around regulatory uncertainty affecting Paytm’s payments business, according to CNBC TV-18.
The sharp slide has been linked to worries over the RBI's Payment Infrastructure Development Fund (PIDF), a scheme designed to incentivise deployment of digital payments infrastructure like point-of-sale (POS) devices and soundboxes, according to CNBC TV-18. The PIDF was last extended until December 2025, but there has been no update on whether it will be renewed or replaced.
If the incentives under the PIDF are not continued, Paytm could see a significant hit to its operational revenue, potentially around ₹200 crore annually, which would weigh directly on its earnings before interest, taxes, depreciation and amortisation (EBITDA), the report added.
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In response to this, Paytm said it had received ₹128 crore from the PIDF for the six months ending 30 September 2025. However, the company acknowledged that there has been no announcement yet on the future of the scheme but said it plans to offset any potential impact through higher sales and other revenue initiatives.
The stock’s fall also comes at a time when the company is preparing to report its quarterly financial results for October–December quarter (Q3 FY26) on January 29.
In its previous quarter, Paytm reported a net profit of ₹21 crore, compared with a significantly higher profit in the year-ago period that included one-time gains.
As per the analysts cited by CNBC TV-18, the PIDF incentives have been a meaningful contributor to Paytm’s profitability, and any uncertainty around this support structure can heighten risk perceptions among investors.
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The report however noted that Paytm can see longer-term growth opportunities driven by its technology infrastructure and merchant network, provided regulatory clarity improves.
Over the past month, Paytm’s stock has declined more than 16%, though it had gained over 7% in the preceding six-month period before this recent slide. Despite periodic volatility throughout 2025, this latest fall represents the most pronounced single-day movement in more than a year.