Paytm to trim small-ticket postpaid loans after RBI tightens norms

Paytm will reduce the disbursement of small-ticket size loans, specifically those less than Rs 50,000, in the wake of the Reserve Bank of India (RBI) tightening norms for unsecured personal loans.

The company said that this adjustment will result in a roughly 50 per cent decline in these disbursements, also known as postpaid loans. However, the company added that the impact on margins or revenue would be minimal.

The Noida-based financial technology (fintech) firm’s decision to slow down on postpaid loans follows the RBI’s recent increase in the risk weighting for unsecured personal loans from 100 per cent to 125 per cent.