June 13 (Punjab Khabarnama) : Fintech firm Paytm will no longer enter the insurance business. The company has changed its plan and has now received the approval of insurance regulator IRDAI for this. The company’s focus will remain on the distribution of products of other insurance companies rather than bringing its own insurance products.
One97 Communications Limited does business under the Paytm brand. The company had decided to enter the insurance business some time ago. For this, a subsidiary was created in the name of Paytm General Insurance Limited, which was registered with the insurance regulator IRDAI. Now the company’s plan has changed. It had applied to withdraw the registration of Paytm General Insurance Limited, which has been approved by IRDAI.
IRDAI gave this information
This information has been given in a report quoting IRDAI. According to the report, the insurance regulator has given information about withdrawing the registration of Paytm General Insurance Limited in a letter dated June 12. IRDA has informed that Paytm General Insurance Limited had applied for withdrawal of registration, which has been approved.
Insurance broking business will continue
Paytm is already working in the business of insurance distribution. Paytm does this business under the name of Paytm Insurance Broking Private Limited. Under this business, the company distributes products of various insurance companies in segments like health insurance, life insurance, motor insurance, shop insurance, gadget insurance etc.
Reserve Bank action was taken in January
Paytm had suffered a major setback earlier this year. Reserve Bank took action on a segment of its business at the end of January. RBI action was taken on Paytm Payments Bank, the banking unit of Paytm Group. After that, the business of Paytm Payments Bank has been closed. RBI action has affected services like Paytm Wallet, Fastag. Although the company is still providing services as a UPI aggregator app, its market share in UPI is decreasing rapidly after RBI action.
