Big relief to paytm, Finance Ministry approves reduction…?
paytm, which is in crisis, has got relief from the government. The government has approved paytm to reduce its stake in its subsidiary paytm Payments Services. This stake was coming in the way of getting the Payment Aggregator License (PA Licence). The bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) rejected its PA license application in november 2022. It also directed the company to apply again after fulfilling the conditions of press Note 3. One 97 Communications holds 100% stake in PPSL
One97 Communications, the company that owns the fintech brand paytm, said in a regulatory filing on wednesday that it has received approval from the Ministry of Finance to reduce its stake in paytm Payments services (PPSL). One 97 Communications holds 100% stake in it. Now the company will re-apply for PA license. During this time, paytm Payments services will continue to provide online payment aggregation service to its partners.
RBI had ordered to follow FDI rules
RBI (Reserve bank of India) rejected the company's PA license application and said that it would have to follow the FDI rules under press Note 3. Under press Note 3, the government had made it mandatory to take prior approval for investments coming from countries sharing borders with India. This was raised due to the apprehensions of Chinese companies taking over the indian market immediately after the Covid pandemic.
click and follow Indiaherald WhatsApp channel