Paytm's decision to curtail its Postpaid business in response to the RBI's tightening norms on unsecured lending has led to a 20% drop in its shares. The company is shifting its focus to higher-value personal and commercial loans for customers with high credit-worthiness and low risk. This move, which will result in fewer personal loans under $600 being issued, is a direct result of increased regulatory scrutiny. The effects are rippling through the industry, with Indian banks also urging fintech partners to limit small personal loans.
Indian banks ask fintech partners to limit tiny personal loans amid regulatory glare -sources https://t.co/W6uiMHXULh https://t.co/KCDSa8TwZA
Shares of Paytm dropped as much as 20% after the company announced plans to issue fewer personal loans under ~$600 to comply with RBI's tightening norms (@refsrc / TechCrunch) https://t.co/DF6pYCyMG8 📫 Subscribe: https://t.co/OyWeKSRpIM https://t.co/Ooqt2VV0UZ
.@Paytm shares tank 20% after company looks to curtail low-value #personal loans It will expand its portfolio of higher-ticket personal and commercial loans to lower-risk and high-credit-worthy customers. https://t.co/AAlVDeRgSv
India’s Paytm curbing low-value personal loans spells bad news for the industry: https://t.co/tiimCVRDgX by TechCrunch #infosec #cybersecurity #technology #news
#Paytm takes a step back on Postpaid business as lending environment hardens The move assumes significance at a time when #RBI has instructed banks and NBFCs to slow down on their unsecured lending business and increase risk weightage on such loans. https://t.co/w2SobsZkBw