wordpress blog stats
Connect with us

Hi, what are you looking for?

Paytm seeking RBI license for peer-to-peer lending: report

paytm

Paytm is reportedly trying to enter the lending space and is seeking a licence from the Reserve Bank of India (RBI) to become a peer-to-peer lending platform.

The development, first reported by the Economic Times was sourced from filings made by the One97 Communications (Paytm’s parent company) at the Ministry of Corporate Affairs, the company moved a board resolution on February 7 saying it intends to “carry on the business of non-banking financial company — peer-to-peer”.

ET reports that the company could have also applied for a licence to the central bank and it could already be under consideration. This though could not be verified as RBI is yet to release the names of the entities which NBFC P2P category and is said to have received multiple applications.

Though the company’s exact plans around peer-to-peer lending could not be determined, its filings to the ministry said, “To carry on the business of NBFC-P2P lending platform as an intermediary to provide the services of loan facilitation via web or app medium or otherwise…”

Sources close to the company told ET that Paytm is trying to leverage the seven-million-strong offline merchant base it has garnered and is already giving out small-value short-term loans to them. Since the company does not have a lending licence it is doing it through NBFC partners.

Advertisement. Scroll to continue reading.

Paytm’s other recent splashes

The RBI’s new KYC norms have led to a dip in the usage of mobile wallets and have had an impact on the company’s core service. This may turn out to be a driving factor in Paytm diversifying its business into the personal finance space.

Paytm Money, the payments company’s wealth management arm is set to begin operations as soon as the company receives approval from the Securities and Exchange Board of India (SEBI). It was reported that One97 Communications, Paytm’s parent company, will invest $10 million upfront in the newly created wealth management arm.

Last month it was reported that Paytm was closer to offering insurance products on its platform, as its parent One97 Communication Ltd has set up two insurance units: Paytm Life Insurance Ltd and Paytm General Insurance Corporation Ltd. The development was found in the company’s ministry of corporate affairs’ filings. According to the filings, the company’s founder Vijay Shekhar Sharma, and senior executives Shankar Nath and Madhur Deora will be the directors of these units.

In a separate development, the company is reportedly also launching a credit scoring product, Paytm Score, which will find out user’s credit score based on their transactions and payment behaviour. This move is in line with its interest in credit or loan segment.

Advertisement. Scroll to continue reading.
Written By

Writes about consumer technology, social media, digital services and tech policy. Is a gadget freak, gamer and Star Wars nerd.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.

News

When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

You May Also Like

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ