New Delhi:
The troubled fintech company Paytm has received positive news after a prolonged period of uncertainty.
Paytm has obtained approval from a government committee to receive a Rs 50 crore investment from China, earmarked for Paytm Payment Services.
However, Paytm still needs approval from the Finance Ministry for this investment to proceed.
The ban on Paytm Payments Bank has caused loss to business
Paytm’s business incurred significant losses following the RBI’s ban on Paytm Payments Bank due to rule violations.
Following this event, Paytm’s stock plummeted. Recently, CEO Vijay Shekhar Sharma likened Paytm to his promising daughter who has encountered a setback.
Now, he intends to restore Paytm’s previous standing by expanding Paytm Payment Services.
According to a report from Business Standard citing sources, this subsidiary, Paytm Payment Services, has become crucial for Paytm’s business.
Objection was raised on Ant Group’s stake in Paytm
Previously, a government committee raised concerns over China’s Ant Group holding a 9.88 percent stake in Paytm.
Following the border dispute with China in 2020, the Indian government heightened scrutiny of Chinese investors.
Paytm awaited this approval for approximately two and a half years.
With approval from the Finance Ministry secured, the company aims to obtain a payment aggregator license from the Reserve Bank of India next.
Paytm said that if anything happens, we will inform the exchange
Currently, there has been no official announcement on this matter.
Additionally, the Foreign, Home, Finance, and Industry Ministries, which are part of the committee, have refrained from commenting on this issue.
A Paytm spokesperson stated that they do not wish to comment on market speculations at this time and will proceed in accordance with SEBI regulations.
Any significant updates will be disclosed to all exchanges through regulatory filings.
