Paytm set to Venture into New Business Post RBI Action

New Delhi:

Following the Reserve Bank of India’s cancellation of Paytm Payment Bank’s license, Paytm’s parent company, One97 Communications, is undergoing significant changes.

Vijay Shekhar Sharma, the company’s Managing Director, has initiated several reforms.

These include reducing the workforce and preparing to venture into new business areas.

Shift to Insurance Distribution

In response to the crisis, Paytm has decided to concentrate on the insurance sector.

The company is shifting its focus towards insurance distribution rather than obtaining a general insurance license.

Initially, Paytm had allocated Rs 950 crore for its general insurance license application.

However, the company has now withdrawn this application and will instead focus on distributing various small insurance products such as life, health, vehicles, shops, and gadgets.

Strategic Changes Announced by Vijay Shekhar Sharma

Vijay Shekhar Sharma, the founder of Paytm, announced that Paytm General Insurance Limited (PGIL),

a subsidiary of One97 Communications Limited, has retracted its general insurance application from the Insurance Regulatory and Development Authority of India (IRDAI).

The company will now emphasize small gadget insurance and other specific insurance products.

This strategic pivot aims to establish Paytm as a leading financial service distribution platform through its wholly-owned subsidiary, Paytm Insurance Broking Private Limited.

By focusing on the distribution of a diverse range of insurance products,

Paytm aims to strengthen its position in the financial services market and navigate the challenges posed by recent regulatory actions.

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