Paytm: Paytm gets govt nod for downstream investment into payment services arm

Paytm got approval from the finance ministry to invest in its payment services business, the fintech firm said on Wednesday. With the approval, the payment services business will resubmit application for its payment aggregator license.

“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,” the company said in a filing.

One 97 Communications, which operates Paytm, has been under the scrutiny of India’s banking regulator and financial crime-fighting agency after the central bank 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 the meantime, Paytm Payment Services will continue to provide online payment aggregation services to existing partners, the company said.