Trends
India’s Paytm gets government nod for investment in payments arm
OUR TAKE Paytm payment services are one of the fintech company’s largest remaining businesses, accounting for a quarter of its consolidated revenue in the financial year ending March 2023. Vivek Joshi, India’s financial services secretary, had said in July that the company can approach India’s centr…
Headline
OUR TAKE Paytm payment services are one of the fintech company’s largest remaining businesses, accounting for a quarter of its consolidated revenue in the financial year ending March 2023. Vivek Joshi, India’s financial services secretary, had said in July that the company can…
Context
OUR TAKE Paytm payment services are one of the fintech company’s largest remaining businesses, accounting for a quarter of its consolidated revenue in the financial year ending March 2023. Vivek Joshi, India’s financial services secretary, had said in July that the company can approach India’s central bank to seek a payment aggregator license, which the bank will evaluate. –Zora Lin, BTW reporter India’s Paytm has received approval from the country’s finance ministry to invest in its payment services business, the fintech firm said on Wednesday.
Evidence
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Analysis
The company has been under scrutiny from India’s banking regulator and financial crime-fighting agency after the RBI ordered One 97 Communications to shut down its payments banking business in January this year. Paytm said with the latest approval, the company will resubmit an application to the ministry to regain a licence for its payment services business. In the meantime, Paytm Payment Services will continue to provide online payment aggregation services to existing partners, the company said. Paytm shares closed down 1.3% on the day. Since the central bank ordered the closure of the payments bank in January this year, the stock has fallen by more than 29%. Also read: Paytm’s loss widens as regulatory action continues to bite
Key Points
- India’s Paytm has received approval from the country’s finance ministry to invest in its payment services business.
- Meanwhile, Paytm Payment Services will continue to provide online payment aggregation services to its existing partners.
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