Paytm Secures Finance Ministry Approval for Investment in Payment Services
Paytm plans to reapply to the Finance Ministry for a license for its financial services unit.
On August 28, Paytm announced that it had received the Finance Ministry’s approval for an investment in its payment services business, but it didn’t disclose the details and stressed its commitment to regulatory compliance.
One 97 Communications, Paytm’s parent company, has faced scrutiny since the RBI ordered the closure of its payments bank in January 2024.
Paytm plans to reapply to the Finance Ministry for a license for its financial services unit, Paytm Payment Services.
Paytm Payment Services will continue providing online payment services. Reuters reported in July 2024 that Paytm secured approval for a ₹500 crore (about $6 million) investment.
Paytm Secures Finance Ministry The RBI had previously rejected Paytm’s application due to foreign investment rules related to China’s Ant Group Co.