Paytm Awaits Government Nod For Investment In Paytm Payments Services
In 2022, the Reserve Bank of India had refused to approve Paytm Payments Services' application for payment aggregator licence.
One97 Communications Ltd., the parent company of Paytm, is awaiting government approval for investment in its material subsidiary, Paytm Payments Services Ltd.
The clarification came through an exchange filing on Monday, after media reports suggested that Paytm was close to winning this approval, a decision that has been pending for two years.
In 2022, the Reserve Bank of India refused to approve PPSL's application for a payment aggregator licence. The regulator also barred Paytm from onboarding new customers.
The filing also explained changes in ownership structure. It said that Paytm founder Vijay Shekhar Sharma was the sole significant beneficial owner.
In August 2023, Sharma sought to acquire a 10.3% stake in One97 Communications from Antfin (Netherlands) Holding B.V. to become its single largest shareholder.
The purchase was conducted through the Netherlands-based Resilient Asset Management BV, in which Sharma owns a 100% stake, according to an exchange filing on Aug. 7.
On Jan. 31, the RBI also imposed stringent restrictions on Paytm Payments Bank for "persistent non-compliance" of know-your-customer norms and "supervisory concerns."
In its orders, the regulator said that Paytm Payments Bank can't accept fresh deposits, top-ups or credit transactions in its accounts after Feb. 29.