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India’s digital payments story has been one of the strongest structural growth themes of the last decade. At the centre of this ecosystem are fintech players like Paytm, which played a key role in expanding merchant payment infrastructure across urban and rural India.
However, a recent regulatory development has raised concerns among investors.
The Reserve Bank of India has ended the Payments Infrastructure Development Fund scheme after December 2025, with no announcement of an extension so far. For Paytm, this development is being seen as a material negative.
Let us understand why this matters, how big the impact could be, and what it means for investors tracking Paytm and the broader Indian markets.
The Payments Infrastructure Development Fund was introduced by the RBI to accelerate the adoption of digital payments, especially in underpenetrated regions.
The scheme focused on supporting the deployment of:
These incentives reduced the cost of merchant onboarding for payment aggregators. This allowed companies like Paytm to scale faster, particularly in Tier 3, Tier 4 and rural markets where affordability is a key constraint.
From a regulatory standpoint, PIDF aligned with RBI’s long term vision of reducing cash dependency and strengthening the digital payments backbone.
The PIDF scheme officially ended on 31 December 2025. Despite market expectations, there has been no confirmation of an extension or replacement framework from the RBI.
This has effectively meant:
For companies that were still monetising these incentives, the impact is immediate.
Market estimates suggest that PIDF related incentives accounted for roughly 20 percent of Paytm’s operating profit at one stage.
This is not core transaction revenue but incentive income that directly supported margins in the payments business. With the scheme ending, this income stream disappears.
In practical terms, Paytm now has to either absorb higher costs or slow down the pace of infrastructure expansion.
Paytm’s payments segment operates in a highly competitive environment with regulated pricing. Merchant discount rates remain low, and profitability depends heavily on scale and operating efficiency.
The absence of PIDF support means:
This explains why analysts have flagged margin pressure risk in upcoming quarters.
Equity markets tend to react sharply when a predictable support factor is removed.
The uncertainty around PIDF extension has led to:
This is less about long term survival and more about valuation recalibration.
While Paytm is the most discussed name, the impact is broader.
That said, India’s digital payment volumes continue to grow strongly, supported by UPI adoption and behavioural shifts. The structural story remains intact, even if policy support reduces.
For Paytm and similar players, the next few quarters will be critical.
Key factors to track include:
This is where professional research and disciplined investing matter.
Regulatory changes can materially impact stock valuations, especially in fintech and financial services.
At Swastika Investmart, investors benefit from:
Rather than reacting emotionally to headlines, investors can rely on structured research and long term perspective.
Why did RBI end the PIDF scheme?
PIDF was designed as a temporary support mechanism. With digital payments reaching scale, RBI appears to be transitioning towards market driven growth.
How much did PIDF contribute to Paytm’s profits?
Estimates suggest PIDF incentives contributed around 20 percent of operating profit during certain periods.
Is this bad for Paytm’s long term business?
It is a short to medium term headwind. Long term performance will depend on diversification into lending, subscriptions, and financial services.
Will digital payment growth in India slow down?
Unlikely. Adoption remains strong, though expansion in remote regions may moderate slightly.
Should investors exit Paytm stock immediately?
Investment decisions should be based on individual risk profile and research, not single news events.
The end of the PIDF scheme is undoubtedly a negative development for Paytm in the near term, especially from a profitability and sentiment perspective. However, it also marks a maturing phase of India’s digital payments ecosystem.
For investors, this is a reminder that regulatory awareness and quality research are critical when investing in evolving sectors like fintech.
If you are looking to invest with clarity, confidence, and credible research support, explore the tools and insights offered by Swastika Investmart.
👉 Open your trading account today
Smart investing starts with informed decisions.
The National Stock Exchange and Bombay Stock Exchange are open on the weekdays from Monday to Friday and are closed on Saturday and Sunday. Here is the complete list of all trading holidays for NSE and BSE.
HolidaysDay DateRepublic Day Tuesday26 January 2021Mahashivratri Thursday11 March, 2021HoliMonday29 March, 2021Good FridayFriday02 April, 2021Dr. Babasaheb Ambedkar JayantiWednesday14 April, 2021Ram NavamiWednesday21 April, 2021Eid-Ul-Fitr (Ramzan Id)Thursday13 May, 2021Bakri IdWednesday21 July, 2021Muharram Thursday19 August, 2021Ganesh Chaturthi Friday10 September, 2021DussehraFriday15 October, 2021Diwali * Laxmi PoojaThursday04 November, 2021Diwali BalipratipadaFriday05 November, 2021Guru Nanak JayantiFriday19 November, 2021
For BSE India, Muhurat Trading shall be held on 04 November 2021 (Diwali - Laxmi Pujan). The time of Muhurat Trading shall be notified subsequently. The exchange may change any of the above holidays, for which a separate circular shall be issued in advance.
Holidays DayDateMorning SessionEvening SessionNew Year DayFriday01 January, 2021OpenClosedMahashivratriThursday11 March, 2021ClosedOpenHoliMonday29 March, 2021ClosedOpenGood FridayFriday02 April, 2021ClosedClosedDr. Babasaheb Ambedkar Jayanti Wednesday14 April, 2021ClosedOpenRam NavamiWednesday21 April, 2021ClosedOpenEid-Ul-Fitr (Ramzan Id)Thursday 25 May, 2021ClosedOpenDiwali - Laxmi PujaThursday04 November 2021ClosedOpenDiwali - BalipratipadaMonday05 November, 2021ClosedOpenGuru Nanak JayantiMonday30 November, 2021ClosedOpen
HolidaysDayDateMahavir JayantiSunday25 April, 2021Maharashtra DaySaturday01 May, 2021Independence DaySunday15 August, 2021Mahatma Gandhi JayantiSaturday02 October, 2021ChristmasSunday25 December, 2021
The list of National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) for 2021 includes all the national holidays and regional public holidays. The above information is important for those willing to trade financial instruments through the stock exchange.
NSE and BSE have five working days a week i.e Monday to Friday. However, During Muhurat Trading (if Diwali falls on a weekend), certain platforms can remain open for a specific period of time.
कच्चे माल और गैसोलीन के अमेरिकी भंडार में गिरावट के कारण कच्चे तेल के भाव मे तेज़ी आई है। साथ ही, ब्रेक्सिट सौदे के संकेत ने निवेशकों की जोखिम की क्षमता बढ़ा दी है। क्रूड और ईंधन के साथ-साथ संभावित ब्रेक्सिट सौदे के कारण डॉलर मे दबाव बना रहा, जिससे कच्चे तेल के भाव को सपोर्ट मिला है।
डॉलर मे गिरावट अन्य मुद्राओं के धारकों के लिए ग्रीनबैक की कीमत को अधिक किफायती बनाता है। लेकिन, कोरोनोवायरस के एक नए संस्करण पर चिंता का विषय है और छुट्टी के मोड में निवेशकों के साथ तेल बाजार शांत भी है।
ऊर्जा सूचना प्रशासन (ईआईए) ने बुधवार को कहा कि कच्चे तेल की सूची सप्ताह में 562,000 बैरल घटकर 4995 लाख बैरल तक गिर गई है। ईआईए ने कहा कि गैसोलीन के स्टॉक में 10.1 लाख बैरल की गिरावट आई, जबकि डिस्टिलेट स्टॉकपाइल्स 23 लाख बैरल से अधिक तक गिर गए है।
तेल की कीमतों ने उन खबरों से भी समर्थन हासिल किया, जो ब्रिटेन और यूरोपीय संघ के एक संकीर्ण व्यापार समझौते को तोड़ने के लिए थे। वैश्विक शेयर बाजार में एक पलटाव के कारण निवेशकों के बीच जोखिम की क्षमता में भी सुधार हुआ है, जिससे लगता है कि कोरोनोवायरस के एक नए संस्करण पर डर थोड़ा कम हुआ है।
कुछ निवेशक तेल की मांग सुधरने के बारे में असमर्थ है, क्योकि अमेरिकियों को फिर से चेतावनी दी गई है कि वे क्रिसमस के लिए यात्रा न करें क्योंकि अस्पतालों में मरीज बढ़ सकते है।
आपूर्ति पक्ष पर, इस सप्ताह अमेरिकी ऊर्जा फर्मों ने लगातार पाँचवें सप्ताह तेल और प्राकृतिक गैस रिसाव मे वृद्धि दर्ज की है। तेल और गैस रिग काउंट, भविष्य के आउटपुट का एक प्रारंभिक संकेतक है और बेकर ह्यूजेस के मुताबिक, सप्ताह में तेल रिग काउंट 2 से बढ़कर 348 तक पहुंच गया है।
घरेलु वायदा कच्चे तेल के भाव इस सप्ताह सीमित दायरे मे रह सकते है। इसमें 3330 रुपय के निचले स्तरों पर सपोर्ट है तथा 3700 रुपए पर प्रतिरोध है।
The commodity market plays a crucial role in the global economy, including India's, by enabling the trading of essential raw materials like oil, gold, wheat, and more. It is a market where buyers and sellers meet to exchange commodities at a certain price, much like the stock market. Commodities form the backbone of the global economy, and the commodity market serves as a vital platform for their trade. In this blog, we will explore the importance and significance of the commodity market in simple terms.
A commodity market is a place where raw materials or primary products, called commodities, are traded. These commodities are divided into two major categories:
Commodity markets allow producers, traders, and investors to buy and sell these products, often through contracts known as futures, which we'll explore further in this blog.
The commodity market is crucial for discovering the fair price of goods and services. Prices in the commodity market are determined by supply and demand. For example, if there’s a shortage of oil, its price goes up, and if there’s a surplus of wheat, its price may go down. This open and transparent pricing helps industries plan their production and helps consumers better understand market conditions.
Producers, traders, and investors use the commodity market to manage risk. Since commodity prices can be volatile (fluctuating based on various factors like weather, political events, or economic conditions), traders use futures contracts to lock in prices in advance.
A well-functioning commodity market contributes to the overall stability of the economy. It helps balance supply and demand, ensuring that resources are efficiently allocated. In India, where agriculture is a key part of the economy, the commodity market helps farmers secure fair prices for their crops, leading to greater economic stability in rural areas.
The commodity market significantly impacts the economy by supporting industries that rely on raw materials. For instance, industries like manufacturing, energy, and agriculture rely on the smooth functioning of the commodity market. These industries contribute to GDP growth, create jobs, and drive economic progress.
Apart from producers and buyers, the commodity market also attracts investors. People invest in commodities like gold, silver, or crude oil to diversify their portfolios and hedge against inflation. Commodities are seen as a safe investment, especially in times of economic uncertainty. Investing in commodities can provide stability when stock markets are volatile.
Commodities are traded internationally, and the commodity market helps facilitate global trade. Countries rich in natural resources, like oil or metals, can export them to countries that need them. This fosters international relationships and creates a flow of goods, services, and capital between countries.
Commodity prices can have a direct impact on inflation. For example, if crude oil prices increase, the cost of transportation, manufacturing, and goods increases, which leads to inflation. Conversely, when commodity prices drop, inflation may decrease as the cost of goods goes down. Governments and central banks often monitor commodity prices to gauge inflationary trends in the economy.
India has a long history of trading commodities, particularly agricultural goods. With a large population dependent on agriculture, the commodity market plays a significant role in stabilizing farmers' incomes and ensuring that consumers have access to essential products at fair prices.
India is one of the largest producers of agricultural products like wheat, rice, and cotton. The commodity market helps stabilize prices and allows farmers to manage risks by using futures contracts. This helps reduce uncertainty and ensures that farmers receive a fair price for their produce.
Gold and silver are some of the most traded commodities in India. Gold is not only seen as a symbol of wealth but also as a hedge against inflation and economic instability. Indians often invest in gold during times of financial uncertainty.
India is a major importer of crude oil, and the energy sector heavily depends on commodity markets to manage price fluctuations. The prices of petrol, diesel, and electricity are directly influenced by crude oil prices in the global commodity market.
Despite its importance, the commodity market faces several challenges:
The commodity market is expected to grow as more people become aware of its importance and potential. As India continues to modernize, the demand for commodities will increase, making it even more essential for producers and investors to utilize this market for price discovery, risk management, and economic stability.
Additionally, technological advancements such as digital trading platforms are making it easier for more participants to join the market. This is likely to improve market efficiency and accessibility.
The commodity market is an essential part of the economy, helping to balance supply and demand, manage price risks, and provide investment opportunities. It supports key industries like agriculture, manufacturing, and energy, while also influencing inflation and global trade. In India, the commodity market plays a critical role in stabilizing prices and promoting economic growth. Understanding how the commodity market works can help producers, investors, and consumers make more smart decisions, ultimately contributing to a more stable and prosperous economy.
It was a truncated week but it was full of action where we saw a strong tussle between bulls and bears. Nifty and Sensex started Monday with new highs of 13777/47055 respectively but on the same day we have seen a sharp fall on the back of worries of a new strain of Covid19 from the UK where Nifty has fallen more than 600 points and Sensex has fallen more than 2000 points at one point of time but then as Stock Market observed that this issue is not so serious which made Bulls comeback aggressively where market rallied for three consecutive days.
At the end of the week, Nifty and Sensex ended on a flat note whereas Sensex continues its 8th-week winning streak while Nifty ends with a minor loss of 0.08%.
If we talk about cash market data then Foreign Institutional Investors are continuing their buying momentum where they bought around 2591 cr, though momentum has slowed down because generally FIIs’ flow remains muted around the Christmas and New Year holiday and we are expecting tepid flow in next week as well. DIIs are still in a selling mode where they sold around 3400Cr.
In the F&O market, FIIs’ long exposure in the cash market stands at 68% which is a comfortable level whereas PCR stands at 1.75 mark which is a little overbought level.
As we discussed last week that 13770-13820 is a critical supply area for the Nifty where we have seen a sharp fall from there but Nifty respected its 20-DMA and then witnessed smart pullback but it is still stock trading below the 13770-13820 zone where if it manages to cross 13820 levels then we can expect a strong rally and Nifty can easily cross 14000 marks. On the downside, 13550 is an immediate support level while 13415 is 20-DMA which remains critical support on a closing basis.
If we talk about Banknifty then 30800-31000 is a critical supply zone but if it manages to take out this zone then we can expect a strong rally towards the 31500/32000 level or even it can head towards its all-time high. On the downside, 30000 is an immediate and strong support level while 29000 is critical support on the downside.
F&O expiry: The market can remain volatile due to the December month F&O expiry.
The most important clue for the Next week will be that we are going to say bye-bye to the most uncertain year 2020 and we are going to welcome 2021 full of positive energy. So wishing you all on behalf of the Swastika family: “A very Happy, Healthy, Peaceful and a Prosperous New Year.”
Swastika Investmart is known for its analysis and proficiency in identifying the right company valuation and help startups and SMEs to go public with the right company valuation. With the state of the art methodologies and 29 years of unmatched market expertise in business valuation services, Swastika helps the associated patrons, stakeholders, promoters and potential investors in getting the best company valuation when businesses are struggling to perform, thereby providing a fair business valuation to the company and thereby strengthening investor’s confidence.
Swastika’s company valuation pedagogy includes:
Strengthening the company’s valuation
Providing Financial advice for SMEs
Merchant Loan Syndication
Apart from that, Swastika has successfully launched various IPO’s including Sharika enterprises, Zodiac energy limited, Innovana Thinklabs ltd and more.
Whenever a company decides to grow, it realizes IPO to raise its capital. With raising capital, they may be able to purchase additional property, equipment, R&D.
Besides, they can generate new potential customers who are ready to invest in their company. Swastika’s IPO valuation services will give you a clear picture of the IPO.
For instance, the company assists you in selecting the right IPO valuation methods, how the value of IPO share prices are determined in the stock market, Pre IPO valuation and more.
Business valuation is the dire need of any business, whether it is small, medium or large. Without having a proper assessment, you can't determine the value of a business.
It is recommended that every business owner should have its company valuation as it allows you to get a real understanding of your company. It can be performed with the help of asset’s values, a company’s cash flows.
Measuring the business valuation of a company can tell you about the present growth of your company.
Swastika’s business value services give you complete support regarding business valuation services. It will give you a clear assessment of your company’s value. Besides, you can plan your business growth in future as well.
One of the main purposes of company valuation is to sell the product of the business and increase its brand awareness. Other purposes are negotiation and improving business performance, assisting founders in evaluating companies.
At Swastika, you will get quality business valuation services at minimum prices. Besides, you will get a complete analysis of company valuation along with the past and present reports.
A detailed analysis will help you get a thorough knowledge of business valuation with the valuation of capital investments, the value of capitalization, the value of capital investments and more.
Valuation of a business is the first step in securing capital. If you are borrowing a good amount of capital for your business, the lender, on the other hand, definitely wants to know about the existing leverages in your company. With the aid of Swastika’s company valuation services, you will get genuine tips regarding company valuation, capital investments and securing capital for your business.
1. A better understanding of a company’s assets
For a business owner, it is important to find out the detailed assessment of the business assets because, with financial figures, you will get a clear understanding of how much you can reinvest into the company.
2. Obtaining accurate company value
Obtaining a company value is important because it helps you to know about the preservation of money, growth, the future value of the business, and future development of businesses.
Company valuation is important for any business as it helps to determine the company’s financial worth. Other benefits of assessing a company's valuation include market capitalization, fundraise, analysis of asset’s value, reverse cash flows and more.
"If we want our regulators to do better, we have to embrace a simple idea: regulation isn't an obstacle to thriving free markets; it's a vital part of them." ~ James Surowiecki
To control the smooth functioning of any department there should be one controller who will look after its performance. They prepare the rule which needs to be followed and make necessary amendments when they see any loophole in it. It is necessary to regulate the capital market to make it's functioning smooth and hassle-free, a major reason for capital market regulation is to make it's functioning more fair and transparent.
Ministry of Finance: This is the topmost office in the country as far as financial matters in the country are concerned and overlooks all the Financial Participants in the Country.
Following are the major law under this segment which regulates the Indian Capital Market.
Securities Exchange Board of India: Securities and Exchange Board of India is the main head of the Financial Markets and the main regulator in the Capital Markets. It performs various functions to maintain the smooth flow of financial markets.
AMFI: Association of Mutual Funds India an authorized regulatory body headed by Mr C.V.R Rajendran, regulates the whole mutual fund industry in India, It regulates licenses work for the betterment of the industry and aims to develop the mutual fund market in India.
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