RBI action on Paytm Payments Bank could affect lending business, says Jefferies

Merchants using Paytm Bank may be impacted and fastag GMV will be majorly affected. This can be a key risk to earnings valuations

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26 Aug, 2025 12:21

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The Reserve Bank of India's (RBI) action on Paytm Payments Bank could affect the bank's lending business, Jefferies said in a report on January 31.

"Key impact can be on lending business (+20 percent of revenues) if lending partners limit business due to operational or governance risks," Jefferies said. The report additionally mentioned that the wallet gross merchandise volume (GMV) may need to be wound down.

"Merchants using Paytm Bank may be impacted and fastag GMV will be majorly affected. This can be a key risk to earnings valuations," Jefferies said.

RBI on January 31 imposed major business restrictions on Paytm Payments Bank including accepting fresh deposits and doing credit transactions after February 29. On March 11 last year, the central bank had barred Paytm Payments Bank from onboarding new customers.

ALSO READ: RBI action on Paytm Payments Bank: Key details you must be aware of

The central bank said a Comprehensive System Audit report and subsequent compliance validation report of the external auditors revealed persistent non-compliances and continued material supervisory concerns in the bank, warranting further supervisory action.

No further deposits or credit transactions or top ups shall be allowed in any customer accounts, prepaid instruments, wallets, FASTags, NCMC cards, etc. after February 29, 2024, other than any interest, cashbacks, or refunds which may be credited anytime, RBI said.