Fintech firm One97 Communications, the owner of Paytm brand, has received the government’s approval for downstream investment in wholly owned subsidiary Paytm Payments Services.
Paytm has been under scrutiny after the RBI ordered it to wind down its payments bank in January.
With the latest approval, the company will resubmit an application with the ministry to regain a license for its payments services business, Paytm said in a regulatory filing on Wednesday.
In the meantime, Paytm Payment Services will continue to provide online payment aggregation services to existing partners, 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,” the company informed in a regulatory filing.
“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.”
The company added that it is committed to a compliance-first approach and upholding the highest regulatory standards.
“As a homegrown Indian company, Paytm is focused on contributing to and advancing the Indian financial ecosystem,” it said.
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