MUMBAI - Shares of One97 Communications Limited, the parent company of digital payment platform Paytm (NS: PAYT ), fell by 3.12% to close at Rs 813.30 on Wednesday after users reported on social media platform X that they were unable to access Paytm's Postpaid loan feature. The company attributed the disruption to an ongoing upgrade and heightened security measures.
The downtrend in the stock market comes amid reports of Paytm's Postpaid facility experiencing issues since November 30, according to social media posts. The Economic Times has associated these disruptions with a cautious approach taken by Paytm's NBFC partners following a recent decision by the Reserve Bank of India (RBI) to increase the risk weightage for unsecured loans by 25%. This regulatory change has led to one of Paytm's key NBFC partners ending their partnership.
In response to these developments, Paytm issued a statement via a stock exchange filing, clarifying that while the Postpaid service is temporarily unavailable for several customers, it is not being permanently discontinued. Instead, Paytm is adjusting its loan distribution strategy in response to the RBI's regulatory guidance.
The company is shifting its focus towards less risky portfolios by de-emphasizing small Postpaid loans and expanding its offerings of higher-ticket personal and merchant loans. These efforts are being made in collaboration with leading banks and NBFCs, aiming to target customers who present lower risk profiles. Paytm also emphasized that merchant loans continue to be a key focus area as they are less impacted by the recent changes in regulatory guidance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.