One 97 Communications, the parent company of Paytm, on Wednesday announced that it has received approval from the Ministry of Finance to invest in its wholly owned subsidiary, Paytm Payments Services Limited (PPSL). With this approval in place, PPSL will proceed to resubmit application for its payment aggregator license.
In a regulatory filing, Paytm said, “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, the company informed, PPSL will continue to provide online payment aggregation services to existing partners.
“We remain 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 further added.
Earlier in January this year, the Reserve Bank of India had barred Paytm Payments Bank from accepting deposits or top-ups in any customer account, prepaid instruments, wallets, FASTags and NCMC card after March 15, 2024, citing “persistent non-compliances and ongoing material supervisory concerns within the bank”. However, Paytm had denied the money laundering allegations.
Later in March, the National Payments Corporation of India (NPCI) gave approval to One97 Communications Limited to become a third-party UPI service provider. The approval received on March 14 said that the company can act as a third-party UPI service provider “under a multi-bank model”.
Axis Bank, HDFC Bank, State Bank of India, and YES Bank shall act as the payment service providers, NPCI had said in a release.