Paytm Gains Approval for Downstream Investment, Advances PA Licence

29 Aug 2024 , 10:55 AM

Paytm Payments Services Ltd. (PPSL), a wholly-owned subsidiary of One97 Communications Ltd. (OCL), has received approval from the Ministry of Finance, Government of India, for downstream investment.

This approval was granted by the Department of Financial Services, as communicated in a letter dated August 27, 2024.

At the time of writing, shares of One 97 Communications Ltd is trading at ₹542.30 which is a 0.80% gain than the previous close. One 97 Communications Ltd has witnessed a 36% dip since the beginning of the year, and 16% gain since the beginning of the year.

Downstream investment refers to the process where an Indian company, which has received foreign direct investment (FDI), invests in the equity or capital of another Indian company.

The approval is a significant development for PPSL, as it paves the way for the company to move forward with its application for a payment aggregator (PA) licence.

The PA licence is crucial for PPSL, enabling it to legally operate as a payment aggregator, facilitating online transactions between merchants and customers.

While awaiting the approval of the PA licence, PPSL will continue providing online payment aggregation services to its existing partners, ensuring uninterrupted service and maintaining business continuity.

One97 Communications Ltd. has emphasized its commitment to adhering to the highest regulatory standards, adopting a compliance-first approach in its operations.

As a leading Indian company, Paytm remains focused on contributing to the growth and advancement of the Indian financial ecosystem, leveraging its innovative financial solutions.

With the necessary approval in place, PPSL will now proceed with the next steps, including resubmitting its PA licence application and ensuring all regulatory requirements are met.