Suryoday Small Finance Bank has successfully recovered its entire claim amount of ₹313.89 crore from the National Credit Guarantee Trustee Company (NCGTC), marking a significant financial milestone for the bank.

Claim Details

The bank had raised an interim claim of ₹313.89 crore with NCGTC under the Credit Guarantee Fund for Micro Units (CGFMU) Scheme. Suryoday Small Finance Bank received the full claimed amount, demonstrating the effectiveness of the CGFMU Scheme in supporting small finance institutions.

Impact on Bank Operations

This substantial recovery is expected to bolster the bank's financial position. The bank has clarified that this claim, received under the CGFMU Scheme, is part of its ordinary course of business. This indicates that such claims and recoveries are standard practices within the small finance banking sector, aimed at mitigating risks associated with micro-unit lending.

Transparency and Disclosure

In line with regulatory requirements, Suryoday Small Finance Bank promptly disclosed this development to the stock exchanges. The bank's commitment to transparency is evident in its adherence to the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015.

Management Changes

In a separate announcement, the bank also informed about changes in its senior management:

• Mr. Pandurang Dixit, the incumbent Chief of Internal Vigilance (CIV), will be stepping down from his role following the completion of his second term.
• Mr. Gaurav Popat, the Chief Audit Officer, will take on the additional responsibility of Interim CIV until a new CIV is appointed.

Suryoday Small Finance Bank's successful claim recovery and proactive management transitions reflect its commitment to financial stability and corporate governance. These developments are likely to be viewed positively by stakeholders and could contribute to the bank's growth trajectory in the small finance banking sector.

Suryoday Small Finance Bank has entered into a strategic partnership with Paytm to introduce an innovative financial product, 'Postpaid', a credit line on UPI that offers customers the flexibility to 'Spend Now, Pay Next Month'. This collaboration marks a significant step in expanding digital credit services in India's fintech landscape.

Key Features of Paytm Postpaid

• Instant Payments: Users can make immediate payments across any merchant UPI QR code or online platform.
• Credit Period: The service provides up to 30 days of interest-free credit.
• Wide Applicability: Customers can use the credit line for various purposes, including recharges, bill payments, bookings, and shopping.
• Seamless Integration: The credit facility is integrated with the UPI payment flow, ensuring universal acceptance and instant settlement for merchants.

How It Works

Paytm Postpaid leverages Paytm's robust technology for secure, real-time payments. The service is being rolled out to a selected customer base, identified through their spending behavior, with plans for expansion to more consumers in the future.

Onboarding Process

To access Paytm Postpaid, customers need to follow these steps:

1. Open the Paytm app and tap the Paytm Postpaid icon on the home page.
2. Create a Credit Line on UPI account by providing basic details and completing KYC.
3. Link the account with UPI.
4. Choose Suryoday Small Finance Bank and authenticate using Aadhaar.
5. Set up a UPI PIN to start making payments through the linked credit facility.

Executive Insights

Avijit Jain, Chief Operating Officer - Lending at Paytm, emphasized the product's aim to provide flexibility in managing everyday expenses, stating, "This launch reflects our commitment to offering secure, compliant, and innovative payment solutions that truly put consumers first."

Vishal Singh, Chief Information Officer and Head Digital Banking at Suryoday Small Finance Bank, highlighted the partnership's goal of expanding access to secure and responsible credit, combining "convenience with responsibility."

About the Partnership

This collaboration leverages Paytm's technology prowess in secure, real-time payments and Suryoday Small Finance Bank's banking expertise. It aims to provide consumers with greater flexibility in managing their expenses while ensuring the reliability of a regulated banking partner.

The launch of Paytm Postpaid as a Credit Line on UPI, powered by NPCI and in partnership with Suryoday Small Finance Bank, represents a significant innovation in India's digital payment ecosystem. It offers a blend of convenience, flexibility, and responsible credit, potentially reshaping how consumers manage their short-term financial needs in the digital age.