Paytm Secures FDI Approval for Payment Services, Set to Re-apply for PA License

Paytm Secures FDI Approval for Payment Services: The owner of Paytm brand, One97 Communications has received approval from the government to invest in its fully-owned subsidiary Paytm Payments Services.

In January, the RBI told Paytm to close its payments bank and since then it has been under scrutiny.

In a regulatory filing on Wednesday, Paytm said that with the recent approval, it will reapply to the ministry for a license for its payments services business.

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Paytm Payment Services said that the company will continue offering online payment aggregation services to its existing users. In a regulatory filing the company said, “This is in furtherance to our letter dated February 12, 2024, regarding the application of Paytm Payments Services Limited (PPSL), a wholly owned subsidiary of One 97 Communications Limited (OCL or the Company), for a payment aggregator (PA) licence.”

It further added, “We would like to inform you that PPSL has received approval from the Government of India, Ministry of Finance, Department of Financial Services, vide its letter dated August 27, 2024, for downstream investment from the Company into PPSL. With this approval in place, PPSL will proceed to resubmit its PA application. In the meantime, PPSL will continue to provide online payment aggregation services to existing partners.”

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