Paytm to restart lending platform operations in India next month
Paytm is gearing up to relaunch its lending platform for digital loans, provided by partner banks and non-banking financial companies (NBFCs) in early March. The company initially aimed for a March 1 restart but faced delays due to ongoing discussions. It's important to note that Paytm's lending platform is separate from Paytm Payments Bank Limited's (PPBL) operations, which experience restrictions imposed by the Reserve Bank of India (RBI).
Lending partners sought clarity on RBI notification
Paytm's lending platform allows NBFCs and banks such as Shriram Finance, Aditya Birla Capital, Poonawalla Fincorp, HDFC Bank, and SBI Cards, to offer personal loans and issue credit cards to customers. On February 1, Paytm temporarily halted its lending platform operations as lending partners sought clarity on RBI's notification of strictures.
Opportunity for rivals
In the wake of the PPBL crisis, banks like Bank of India (BOI) and Yes Bank are eyeing a share in the QR codes and Soundbox business. The RBI recently clarified that merchants must obtain new QR codes linked to an account with a different bank or wallet before March 15. A senior BOI official revealed that the lender has instructed all branches to focus on increasing the penetration of its QR codes.
