Was the Monetary Policy announcement negative for Paytm?

There was a statement in the RBI governor speech, which was interpreted as negative by the markets for Paytm. However, it does not look to be too negative if you scratch the surface and look at the ground reality. Paytm stock was spooked after the RBI governor, Shaktikanta Das in his post-policy address made a passing remark. He referred to bringing out a discussion paper on digital payment charges, with a view to reducing the same.

However, the reduction in digital payment charges would actually be insignificant for Paytm. Paytm gets chunk of revenues from merchants on the POS instruments rather than on each transaction processed. Hence reduction of digital transaction charges would be immaterial for Paytm. Paytm has already made transaction free for small merchants, UPI and RuPay cards