By Inc42 Media
Shares of Paytm jumped 10% to INR 508.85 apiece during today’s intraday trade on the BSE
The stock rallied after the fintech major reportedly secured approval from the government to invest INR 50 Cr in its payments arm, Paytm Payment Services
The approval will enable Paytm to apply for an online payment aggregator (PA) licence from the Reserve Bank of India
Shares of Paytm
jumped 10% to INR 508.85 apiece during today’s intraday trade on the BSE after the fintech major reportedly secured approval from the government to invest INR 50 Cr in its payments arm, Paytm Payment Services.
Reuters reported on the development first, citing a top finance ministry official.
The approval will enable Paytm to apply for an online payment aggregator (PA) licence from the Reserve Bank of India.
The approval was reportedly stuck for months partly due to concerns about China-based Antfin (Netherlands) Holdings’ shareholding in its parent entity.
As of the fiscal year ended March 2024, Antfin (Netherlands) Holdings held a 9.88% stake in Paytm’s parent One 97 Communications.
Earlier this month, the government panel overseeing investments linked to China, greenlit the INR 50 Cr investment by Paytm in its subsidiary.
Paytm incorporated Paytm Payment Services to secure a PA licence. While the company initially tried to get the PA licence in 2020, the RBI directed it to resubmit the application to ensure compliance with the FDI rules.
The PA framework was introduced by the RBI in March 2020. It mandates that payment gateways secure an aggregator licence for acquiring merchants and delivering digital payment acceptance solutions.
(The story will be updated soon.)