Paytm Postpaid, which is the online credit business of the digital payment major Paytm, is now transferring its loan book to the Gurgaon based non-banking financial institution Clix Capital, in what could possibly be a fallout of regulatory scrutiny, according to the report.
This even comes at a time when in parallel development public interest litigation was filed in the Delhi High Court last month alleging Paytm Payments Bank was flouting regulatory norms by offering any of the credit its users.
Paytm Postpaid is a credit offer with which customers can buy goods and services and make settlements later, similar to how the credit cards and other Pay Later Products work. The platform allows the customers to borrow around INR 60000 and offer credit period of 40 days.
“While the deal was struck for existing bank customers who were to be offered the postpaid facility, for non-ICICI Bank customers the product could not work since there were issues around sharing of consumer data on either sides,” said one of the persons cited earlier.