The deadline supplied by fintech large Paytm to handle operational hurdles hindering its lending operations and resume the sanctioning of new loans is ready to conclude on February 14.
During an organization convention name on February 1, One97 Communications President and Chief Operating Officer Bhavesh Gupta indicated a short lived halt in issuing new loans to handle operational challenges stemming from RBI restrictions on Paytm Payments Bank Limited (PPBL). The RBI directive, issued on January 31, mandated PPBL to stop accepting deposits or top-ups in varied buyer accounts and devices by the end of February.
Although Paytm’s lending enterprise is impartial of PPBL, roughly 10-15 per cent of Paytm retailers, totaling round 60,000-70,000 retailers, have autopay mandates established by their PPBL accounts. To stop reimbursement disruptions, Paytm should transition these repayments linked to PPBL to different banks.
Gupta mentioned, “We will not be originating loans for maybe a couple of weeks before we solve for the operational challenges, and then we go back to normal.”
In the December quarter, Paytm disbursed loans amounting to Rs 15,535 crore, protecting service provider loans, private loans, and postpaid loans. The quantity of distinctive customers availing loans by Paytm surged by 44 lakhs over the previous 12 months, reaching 1.25 crore.
In December 2023, Paytm allotted Rs 3,579 crore for service provider loans, Rs 4,460 crore for private loans, and Rs 7,496 crore for postpaid loans.
An electronic mail inquiry despatched to Paytm for additional clarification remained unanswered on the time of reporting.
(With PTI inputs)ÂÂ
