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Banks ask fintech partners to curtail small personal loans
Mint Mumbai
|December 08, 2023
Top Indian banks and non-bank lenders have asked their fintech partners to curtail issuing tiny personal loans, three banking and one industry person with knowledge on the matter said on Thursday, weeks after the central bank clamped down on the fast-growing business.
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Paytm on Wednesday said it plans to go slow on sub-₹50,000 loans, the first to announce such a move since the Reserve Bank of India (RBI), last month, told banks to set aside more capital to cover personal loans and lending via NBFCs on concerns that soaring demand could lead to higher risk.
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